News Releases
Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - March 15, 2001
Contact:  Governor's Communications Office, 360-902-4136

Locke asks U.S. Senate Energy Committee for short-term price caps

Washington, D.C.- Gov. Gary Locke told the U.S. Senate Energy and Natural Resources Committee that Western states need the federal government to impose short-term, temporary wholesale energy price caps.

"Without these price caps the Western economy remains in jeopardy," Locke stated before the full committee in Washington, D.C. "This is really a Western United States energy crisis with high energy costs causing serious economic pain to citizens, farms, businesses and schools as well as state and local governments."

The governor pointed out how Washington, Oregon, Idaho, Arizona and Nevada all share the same electric grid, and in turn the same power and each others' misfortunes.

"In Washington alone, wood products giant Georgia Pacific laid off 850 workers before Christmas, and a Tacoma company just laid off 80 workers and cut production in half."

Locke pointed out the steps he is taking to fix this in Washington. They include:

Asking Washington government agencies, residents and businesses to reduce energy consumption by 10 percent ... and they have cut usage significantly

Using emergency powers to allow utilities and industries to operate diesel engines and other temporary generators this winter

Reaching agreements that allow operators of older "peaking plants" to run continuously

Obtaining funding from the Legislature for low-income assistance to augment federal block grants.

Locke stressed the key to reducing outrageously high energy costs in the West is federal intervention to repair the wholesale market structure.

While Locke praised President Bush's efforts to produce a national energy policy, he said Washington's state economy must be stabilized now.

"Temporary price caps do not discourage construction of new power plants if operators see a sustainable market and reasonable return on investment," Locke said.

Locke also pointed out stabilization would allow California a "time out" to deal with its deregulation problems, as well as allowing other Western states to maintain their economies and get people back to work.
Related Links:
- Energy is money. Think before you spend it.


» Return to this month's News Releases
» View News Release Archive

Access Washington