Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Douglas V. Fant who wrote (81261)	12/10/2000 8:48:03 PM
From: Second_Titan	Read Replies (3) \| Respond to of 95453

Calif Gov `Outraged' Over Cal-ISO, FERC $250 Power Cap Dow Jones Newswires By JASON LEOPOLD OF DOW JONES NEWSWIRES LOS ANGELES -- California Gov. Gray Davis said late Friday he will work with state lawmakers to swiftly draft legislation to dismantle the state's grid operator after the non-profit agency secretly petitioned federal regulators to lift a $250 megawatt-hour wholesale power price cap. "I intend to work with the legislature to dismantle the current (Independent System Operator) and reconstitute it in a way that will be responsive to Californians," the Democratic governor said in a prepared statement, adding that he is requesting federal regulators to rescind their decision. Late Thursday, the ISO's senior staff worked on an emergency petition, which was sent to the Federal Energy Regulatory Commission, requesting wholesale power price caps of $250/MWh be removed because they are driving power suppliers to sell to neighboring states willing to pay above California's $250/MWh price cap, thus putting a strain on the state's electricity supply. It took FERC less than a day to approve the emergency order saying the new mechanism should attract power suppliers into the California market. FERC said instate generators can bid above the $250/MWh cap, but anything above that amount won't set the clearing price and will be subject to review. The ISO declared a stage-three power emergency for the first time Thursday as operating reserves dipped below 1.5%. That measure allowed the ISO to obtain power from the federal power agencies in the Northwest and from instate resources, but the state came perilously close to rolling blackouts. Steve Maviglio, Gov. Davis' press secretary, said the ISO officials met with the governor's senior staff earlier Friday and said "everything was fine" with the state's electricity supplies, never disclosing its plans to file with FERC. "This ruling issued in the dark of night without notice to anyone in California, is an outrageous assault on the consumers and the businesses of California by a federal agency answerable to no one and an unaccountable entity that acted without the authorization of its board of directors," the governor's statement said. "It appears to be based on misleading and erroneous information and I am calling on FERC to rescind immediately." The governor has been lobbying FERC to impose a $100/MWh cap on wholesale electricity bid into the state, and as of late Thursday, federal regulators appeared ready to grant the governor his request. But the ISO's inability to procure adequate resources led to the FERC action, said ISO Chief Executive Officer Terry Winter. The ISO has been paying astronomical wholesale power rates to buy electricity in the volatile spot market. Still, the governor said the ISO action is just further evidence of the failure of deregulation. "The ISO misled both the FERC and my staff, which had been working closely with them to keep the lights on in the state," the governor said. "I will not stand by and allow our economy to be ruined by a flawed deregulation experiment that is not working. I am calling on Congress to immediately investigate this action, which I believe is disastrous for California ratepayers and businesses and should never have been taken in secret."