Subject: California Update/FERC p.2; 6/14/01
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Date: Thu, 14 Jun 2001 20:11:00 -0700 (PDT)

FERC to Examine More Price Mitigation
It is reported that FERC will be looking at HR 1974 by Rep Doug Ose (R-CA) as the basis for expanding their mitigation efforts.  Basically it expands mitigation efforts to apply around the clock rather than in emergency instances.  The letter from Rep. Tauzin to Ferc Chairman Hebert which prompted Hebert to call the meeting on Monday is supported by 14 House Republicans.  At this time, it appears FERC is seriously considering expanding price mitigation to the WSCC states.  However, the administration still opposes price controls, and in case price controls are applied, Secretary Abraham yesterday inoculated against taking responsibility by saying "FERC is an independent agency.."  The FERC agenda will apparently examine at least four price mitigation cases California filed with FERC:

?	Extending FERC's current price mitigation efforts to all WSCC states and amending the current price limits applicability --now in effect only during stage three power emergencies in California--to 24 hours a day, seven days a week.
?	Requiring power generators in the entire Western region to sell available electricity to California or into their local power grids during emergencies, reducing the threat of blackouts.
?	Establishing a regional framework for large power users to sell electricity back into the grid during peak usage times. Some companies that have long-term power contracts at low rates may be able to make money by scaling back their operations and selling electricity.
?	Expanding an order issued last year that authorized refunds for excessive markups during the most extreme power emergencies. That refund order would now apply to excessive prices during all power emergencies. 

Attached below is Rep. Tauzin's letter to Commissioner Hebert and likewise HR1974.