Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - January 3, 2001
Contact:  Governor's Communications Office, 360-902-4136

Locke goes to appeals court for just and reasonable power rates

OLYMPIA - The state of Washington today urged a federal court to require the Federal Energy Regulatory Commission (FERC) to enforce just and reasonable electricity prices in California and throughout the Western states, Gov. Gary Locke announced.

Locke filed a "friend of the court" brief in a case filed by Southern California Edison Co. before the U.S. Court of Appeals in Washington D.C.

The utility asked the court to direct FERC to revist its Dec. 15 order declining to establish price caps on wholesale power rates.

Wholesale electricity rates have soared to unprecedented levels since last summer, forcing some local utilities to raise retail power rates and causing some businesses to curtail operations.

"FERC's recent decisions to help California through its energy crisis have the potential to harm Washington and other Northwest states," Locke said. "These decisions violate federal law which requires FERC to ensure that prices of short-term wholesale energy are just and reasonable."

Locke said wholesale power markets in the Northwest have become volatile and prices have risen as much as 30 times over last year due to California's failed effort to restructure its electricity market.

"These prices are far in excess of the cost to produce electricity and are causing harm to electricity consumers in Washington," Locke said.

He also noted that California consumes so much power - more than 200,000 megawatt hours per day - that its purchases of wholesale power push up the prices smaller states such as Washington must pay.

Finally, the governor argued that uneven and inconsistent regulatory treatment of the different states that share the same power grid and wholesale power markets create the opportunity for unscrupulous power generators to make unfair profits.

"We want the court to direct FERC to set just and reasonable wholesale power rates in California and throughout the West. FERC also must maintain an even playing field for everyone," Locke said.

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