U.S. Regulators’ Power Plan Stops Short of Solution

* It is evident to those of us working to protect California consumers that where fixing our broken electricity market is concerned, the Federal Energy Regulatory Commission is willing to talk the talk, but not walk the walk [“U.S. Urges Major Fixes for State’s Power Market,” Nov. 2].

The commission’s proposed plan for getting us out of the mess that deregulation has created makes some movements toward fixing our electricity woes, but does not go nearly far enough in laying blame squarely on price-gouging power generators and or take a firm enough hand in limiting future wholesale prices or ordering refunds to ratepayers.

FERC is certainly right in calling the wholesale rates being charged by power producers in California “unjust and unreasonable.” However, it must back up that judgment with action, as the only agency that has the authority to bring those rates back to something resembling the cost of producing power.

Above all, consumers must not have to bail California utilities out any further for the sky-high wholesale rates they have been charged in the past months, nor must consumers be made to pay unregulated retail electric prices in the future until those prices return to reasonable levels.

FERC must strengthen its proposal for changes in the California electricity market in the coming weeks, or it will have failed miserably at a time when the public deserves strong federal action on their behalf.

SUSANNAH CHURCHILL

Energy Associate

California Public Interest Research

Group

Sacramento

*

Well, there it was, buried on page 8 of the Business section, the explanation for the obscene jump in electricity price to consumers.

It’s the competition, stupid.

Competition, that is, according to the energy suppliers! They all bid to supply electricity to the California Power Exchange and guess what--the highest bid not only wins, but everyone else also gets that same highest price!

Wow, what a way to keep prices down.

SALEM SPITZ

Cerritos