Democrats urge price controls as 'central focus' of electricity legislation
By Kate Thomas
OGJ Online
HOUSTON, Mar. 26�Wholesale electricity price controls should be the "central focus" of any federal legislation aimed at solving California's energy crisis, a group of California Democrats lawmakers said, after Rep. Joe Barton's (R-Tex.) staff floated a series of proposals that did not include price caps.
Barton was scheduled to meet with the White House staff over the weekend to determine whether emergency legislation will contribute to a solution. Last week a laundry list of possibilities was circulated after Tuesday and Thursday's hearings by the US House Subcommittee on Energy and Air Quality chaired by Barton. A committee aide Friday said no decisions have been made on what to include in an emergency package�if there is one.
Tasking Barton for the rush, the California members said they "are concerned that your list of proposals does not adequately address the single most important step the federal government should take to assist California and other states in the western power grid: reining in skyrocketing energy prices."
Such a "step should be the central focus of any proposal we develop, as this issue falls solely within the jurisdiction of the federal government," said Reps. Henry Waxman, Anna G. Eshoo, Lois Capps, and Jane Harman in a letter to Barton.
They recommended the subcommittee take immediate action to address wholesale prices or risk an "enormous energy crisis this summer" in the West. They noted price regulation has been endorsed by the governors of California, Oregon, and Washington.
During last week's hearings most Democrats advocated a cap, while Federal Energy Regulatory Chairman Curtis Hebert and Energy Sec. Spencer Abraham have opposed a price cap. FERC Commissioner William Massey called for a cap, arguing "high prices that exceed production and operating costs serve no useful purpose."
The standoff could doom an emergency package. Barton said time was of the essence if lawmakers expected any help to make a difference this summer, when many experts conclude blackouts are almost ineveitable.
In their letter, the California lawmakers also complained of proposals that would "undermine the Clean Air Act." Among the proposals being floated one would direct the Environmental Protection Agency to establish a nitrogen oxide (NOx) emissions credit bank for power plants and waive NOx allowance requirements.
"There is widespread agreement among those directly involved in California's electricity system that clear air rules are not responsible for electricity shortages," according to the letter.
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