Western Energy Crisis

California's energy crisis of 2000-2001 resulted in blackouts throughout the state and inconvenienced millions of citizens and businesses. The crisis had an impact on the economy of the Western region and perhaps the entire country. (Last Updated January 9, 2003)

Latest News

FERC Asked to Increase Refund of Energy Company Overcharges to California

Rep. Waxman joined with 32 California Democratic colleagues to ask the Federal Energy Regulatory Commission (FERC) to substantially increase the refund to California proposed by a FERC judge for energy company overcharges. The judge had found that California was due $1.8 billion in refunds, but owed energy suppliers $3 billion. Some energy companies have admitted that they manipulated energy markets during the 2000-2001 energy crisis, and evidence has consistently indicated that California consumers have been gouged tens of billions of dollars by the energy industry.

Evaluating California Energy Crisis Claims

Rep. Waxman re-evaluates claims about the causes of the energy crisis in light of the facts as they are now known a year after the California energy crisis.

California Needs Short-Term Price Relief

Rep. Waxman has written to Rep. Billy Tauzin, Chairman of the House Energy and Commerce Committee, laying out in detail his understanding of the causes of and solutions to California’s electricity crisis. In the letter, Rep. Waxman explains why California urgently needs short-term price relief.

Flaws of the “Electricity Emergency Relief Act”

The "Electricity Emergency Relief Act" being drafted by Rep. Joe Barton is intended to help California address the current electricity crisis. Unfortunately, the legislation, if enacted, would exacerbate California's problems by increasing energy costs, undermining state efforts to respond to the electricity crisis, and weakening important environmental protections.

Rep. Waxman Compiles California Electricity Crisis Myths

There is a great deal of confusion and misunderstanding about California’s electricity crisis. Rep. Waxman has compiled a number of myths about the crisis, and he explains here why they are erroneous. Rep. Waxman further explains why H.R. 1647, the "Electricity Emergency Relief Act," a bill being considered by the House Energy and Commerce Committee which purports to address California’s needs, is inadequate, and why his “Price Gouging and Blackout Prevention Amendment” is needed.

Companies Profit from California’s Energy Crisis

At the request of Rep. Waxman, the Special Investigations Division prepared a report which documents the extraordinary revenues and profits that out-of-state energy generators doing business in California recorded last year. On average, their company-wide profits more than doubled from 1999 to 2000. In some cases, operating income from their California subsidiaries or operating units increased tenfold or more.

Protesting FERC Decision to Order Release of Confidential Contracts

Rep. Waxman wrote a letter protesting FERC’s decision to order power suppliers to produce copies of confidential contracts with California for disclosure to the Government Reform Committee. Rep. Waxman warned that revealing the terms of the contracts “would severely undermine [California’s] position in negotiating additional contracts."

West Coast Democrats Ask President to Intervene at FERC

Forty-two West Coast Democrats wrote to President Bush requesting that he intervene at the Federal Energy Regulatory Commission. The FERC has refused to protect Western families from skyrocketing electricity prices or to act on allegations of price gouging in the wholesale electricity market.

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