Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - July 18, 2002
Contact:  Governor's Communications Office, 360-902-4136

Gov. Locke's statement on Federal Energy Regulatory Commission's decision to lift energy price caps

OLYMPIA - "Last year, despite my calls for action, FERC waited seven long months before capping wholesale energy prices and ordering power marketers not to withhold generation - a delay that caused significant damage to our state's economy. Such dereliction of duty must never happen again.

"I am pleased that FERC is extending its order prohibiting power producers from withholding power from the market. This order is important to address some of the most obvious forms of market manipulation that occurred during the energy crisis last year.

"I won't second-guess FERC on its decision not to extend the existing price caps at this time, though I am concerned that replacing them with a $250-per-megawatt/hour bid cap may be insufficient to protect consumers and businesses. The real issue is whether FERC will be ready and willing to impose meaningful price controls without delay should problems reappear in the wholesale market.

"State and federal agencies are now investigating the events of last year and identifying the kinds of manipulation that occurred in the deregulated markets. FERC should focus on that task now. This is the wrong time for FERC to be using its limited resources to design new and untested deregulated market structures that may invite new forms of market manipulation.

---

Related Links:
- Federal Energy Regulatory Commission

» Return to this month's News Releases

» View News Release Archive