Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - December 13, 2000
Contact:  Governor's Communications Office, 360-902-4136

Locke calls on federal government to cap power rate increases

OLYMPIA - Gov. Gary Locke today called upon federal regulators to cap skyrocketing western state electricity prices that are causing consumers' bills to jump as much as 100 percent.

"The Pacific Northwest has been hurt badly in recent months by unprecedented price increases in the wholesale power market. Several critical businesses have curtailed operations and laid off hundreds of workers, while others face permanent closure," Locke warned in letters to President Bill Clinton, Energy Secretary Bill Richardson and James J. Hoecker, chairman of the Federal Energy Regulatory Commission (FERC).

"Utility ratepayers are now facing surcharges as high as 100 percent of their monthly retail power bills," Locke noted.

The governor also warned that agencies, schools and universities may have to curtail programs because of soaring power costs.

Locke, in conjunction with the Washington Utilities and Transportation Commission, called upon FERC to immediately cap wholesale power rates consistently throughout the western United States.

"I also request that you take whatever action is available to you to require full and ongoing operation of all available power plants in the region throughout the winter," Locke told the president, energy secretary and FERC chairman.

The governor said cold weather and low stream flows through hydroelectric dams in recent days do not account for the high increases in energy costs.

"Rather, these prices reflect problems resulting from wholesale deregulation and California's flawed restructuring experiment, and federal action must be taken at once to restore stability and rationality to the market," Locke wrote.

Locke warned that without broad federal action, Washington and its neighbors would be exposed to continued manipulation of the power market.

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