US Takes Emergency Steps on California Electricity

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US Takes Emergency Steps on California Electricity

Wednesday, December 13, 2000

WASHINGTON (Reuters) - U.S. Energy Secretary Bill Richardson said on Wednesday the federal government would step in to require power generators and marketers to ship electricity to California to prevent imminent blackouts.

"Our objective is keep the lights on in California," Richardson said at a news briefing after meeting with California Sen. Dianne Feinstein. Richardson also met with California Gov. Gray Davis, and Federal Energy Regulatory Commission chief James Hoecker to discuss the power crisis in California.

Richardson said he used his authority in the Federal Power Act and he would require out-of-state generators and marketers currently balking at selling power into California to do so immediately.

The California Independent System Operator warned on Wednesday that the state would experience rolling blackouts beginning at 4 p.m. EST, due to 13 out-of-state generators who refused to sell to California utilities. The out-of-state firms feared the utilities would not be able to pay the rocketing spot market prices.

Richardson also said the Energy Department would set rates for power sold to the California Independent System Operator at a level that would "ensure generators receive a fair return," but not at rates that would cripple utilities and consumers. He also ordered the Bonneville Power Administration and the Western Power Administration -- both government-owned entities -- ship as much power to California as possible.

http://news.lycos.com/headlines/TopNews/article.asp?docid=RTNEWS-ENERGY-CALIFORNIA-DC&date=20001213

-- Martin Thompson (mthom1927@aol.com), December 13, 2000


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