Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - January 16, 2001
Contact:  Governor's Communications Office, 360-902-4136

Washington calls again for federal government to impose meaningful price caps fairly

OLYMPIA - The state of Washington has filed a motion with the Federal Energy Regulatory Commission demanding that it impose meaningful temporary price caps on wholesale power equally throughout the Western states, Gov. Gary Locke announced today.

Washington is intervening with FERC in a case filed by Puget Sound Energy. FERC on Dec. 15 declined to extend to other Western states the so-called "soft" price caps it has granted to California. Washington is joining Puget Sound Energy in demanding that FERC impose meaningful temporary price caps across the West.

The soft caps don't accomplish the market stability that the governor seeks. Under a "soft" price cap, sellers asking more than $150 per megawatt hour must file documents with FERC defending their prices as just and reasonable.

"California's deregulation of the power market is causing unacceptable rate increases and power supply problems in the Pacific Northwest," Locke said. "FERC is the only regulator of the wholesale power market and it must act swiftly, decisively and comprehensively to bring stability to the Western power markets."

He added, "Power supplies throughout the West are interconnected. Neither California nor Washington are islands. FERC regulation of wholesale power markets must be done consistently across the West or some states will continue to face skyrocketing prices and supply problems."

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