Locke excoriates out-of-state power firms

Governor accuses Southwest and California firms of price manipulation

REBECCA COOK, THE ASSOCIATED PRESS

OLYMPIA -- Gov. Gary Locke on Thursday condemned out-of-state electricity companies that he says are unfairly profiteering off Washington's energy customers.

"Once again, we're waking up to obscene, manipulative and extortionist electricity prices in Washington, charged by out-of-state power generators," said Locke, who attended an energy summit in Denver on Wednesday with Energy Secretary Bill Richardson and four other Western governors.

Locke said he is convinced that out-of-state companies, particularly in the Southwest and California, are manipulating prices. Electricity that normally costs $30 per megawatt hour is now selling for $500 to $1,200 per megawatt hour, Locke said. Meanwhile, some electricity generating plants in California are lying dormant for unexplained reasons.

"It is pretty obvious there is price manipulation going on," Locke said. He said high energy costs are resulting in a "massive transfer of wealth, not only out of Washington but out of the West," and threatening Washington's prosperity.

The governors asked the Federal Energy Regulatory Commission to investigate the cause of California's skyrocketing electricity prices, who benefits from the prices and whether any generating capacity has been withheld. FERC will also prepare a report on the potential consequences of a price cap, and that report should be ready within 10 days, Locke said.

Locke, along with Richardson, California Gov. Gray Davis and Oregon Gov. John Kitzhaber, believes temporary, regional price caps are the best solution. Davis has suggested a temporary but firm limit of $100 per megawatt hour.

Davis, Locke and Kitzhaber are all Democrats. The three Republican governors at Wednesday's conference -- Utah Gov. Mike Leavitt, Wyoming Gov. Jim Geringer, and Colorado Gov. Bill Owens -- are not convinced that price caps are the answer.

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-- Martin Thompson (mthom1927@aol.com), December 22, 2000