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[Federal Register: October 25, 2000 (Volume 65, Number 207)]
[Notices]               
[Page 63853]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25oc00-67]                         


[[Page 63853]]

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DEPARTMENT OF ENERGY

Federal Energy Regulatory Commission

[Docket Nos. EL00-95-000 and EL00-98-000]

 
Order Announcing Expedited Procedures for Addressing California 
Market Issues

October 19, 2000.
    Before Commissioners: James J. Hoecker, Chairman; William L. 
Massey, Linda Breathitt, and Curt Hebert, Jr.
    San Diego Gas & Electric Company, Complainant, v. Sellers of 
Energy and Ancillary Services Into Markets Operated by the 
California Independent System Operator and the California Power 
Exchange, Respondents; Investigation of Practices of the California 
Independent System Operator and the California Power Exchange.

    On August 23, 2000, in the consolidated dockets listed above, the 
Commission issued an order initiating hearing proceedings under section 
206 of the Federal Power Act \1\ to address matters affecting bulk 
power markets and wholesale energy prices in California.\2\ The 
Commission held the hearing in abeyance, however, pending the results 
of a separate staff fact-finding investigation, ordered by the 
Commission on July 26, 2000, of the conditions in electric bulk power 
markets (including volatile price fluctuations) in various regions of 
the country.\3\ In the August 23 Order, the Commission directed staff 
to focus its fact-finding investigation on California and the Western 
region as soon as possible; the Commission stated that it intended to 
issue a further order in the captioned dockets after it reviews the 
outcome of the staff investigation related to California markets to 
take into account the staff investigation findings, as appropriate, and 
to address or further refine the issues it was setting for hearing, as 
appropriate.
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    \1\ 16 U.S.C. 824e (1994).
    \2\ San Diego Gas & Electric Company, et al., 92 FERC para. 
61,172 (2000), reh'g pending (August 23 Order).
    \3\ Order Directing Staff Investigation, 92 FERC para. 61,160 
(2000). The order directed staff to complete the investigation and 
report the findings to the Commission by November 1, 2000.
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    Because of the need for expeditious action to address the serious 
issues affecting California electric power markets and California 
consumers, and to provide guidance to persons whose interests may be 
affected by decisions in these dockets, the Commission is taking the 
unusual step of announcing in advance the procedures it expects to 
follow over the coming weeks to move forward in these proceedings:
    <bullet> On November 1, 2000, the Commission plans to hold a 
special meeting for purposes of considering the issuance of a proposed 
order in the captioned dockets that proposes specific remedies to 
address the issues set for hearing in the August 23 Order and that 
directs any further procedural steps deemed necessary or appropriate. 
The Commission also will place in the public record of these dockets 
the staff investigation report on California and the Western region.
    <bullet> The Commission will give all interested persons 
approximately three weeks to intervene \4\ and to comment on the 
Commission's proposed remedies or on other remedies that they believe 
should be adopted, and to provide any additional factual information or 
arguments to supplement the record. Comments filed may also address any 
facts or issues discussed in the staff investigation report that is 
placed in the public record of the captioned dockets.
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    \4\ Parties that intervened in the SDG&E complaint, Docket No. 
EL00-95-000, are considered to be parties in the consolidated 
hearing proceeding. See August 23 Order at 61,608.
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    <bullet> On November 9, 2000 (during the comment period on the 
proposed remedies), the Commission expects to hold a public conference 
to discuss proposed remedies. A transcript of the conference will be 
placed in the public record of the captioned dockets. A separate order 
will be issued to specify time of the conference and the manner for 
seeking participation in the conference.
    <bullet> The transcript of the Commission's September 12, 2000 
public conference conducted in San Diego, California, in Docket No. 
EL00-107-000, and any written comments filed in that docket, will be 
placed in the public record of the captioned proceedings.
    <bullet> Based on the record developed in the captioned dockets, 
including the staff investigation report and all comments and 
additional facts and information placed in the record, the Commission 
anticipates issuing, by the end of this calendar year, an order 
adopting and directing remedies (to the extent those remedies are 
within our jurisdiction) to promptly address to the extent possible the 
identified problems adversely affecting competitive power markets in 
California and, if necessary, ordering any further proceedings to 
develop remedies to other identified problems.
    The Commission reminds all interested persons that this is a 
contested, on-the-record proceeding, and that the Commission's 
regulations concerning ex parte communications apply. Generally, this 
means that no person may make any off-the-record communication to a 
Commissioner or to any other Commission decisional employee in this 
proceeding. An off-the-record communication means any communication 
relevant to the merits of the proceeding that, if written, is not filed 
with the Secretary and served on the parties or, if oral, is made 
without reasonable prior notice to the parties in the proceeding and 
without the opportunity for such parties to be present when the 
communication is made. See 18 CFR 385.2201 (2000).

    By the Commission. Commissioner Hebert concurs with a statement 
attached.
David P. Boergers,
Secretary.

Hebert, Commissioner concurring:
    I support this order because it gives the people of California 
an indication of the timetable for FERC action following our staff's 
investigation of this past summer's prices. In a democratic society, 
government owes citizens the duty to account for its actions and the 
means for them to affect policy. I would go a step further, however. 
Rather than wait for November 1 to release the findings of our 
staff's investigation, I urge the Chairman to release the completed 
report now. Open government requires it; fairness does as well. The 
people of California should have as much time as possible to digest 
our staff's findings and consider the options presented.
    Justice Brandeis often remarked ``Sunshine is the best 
disinfectant.'' Let the sun shine on our staff's report. It can only 
help heal the raw emotions rampant in the State of California. I 
hope that the Commission will proceed in the right path from now on. 
I, therefore, concur.

Curt L. Hebert, Jr.,
Commissioner.
[FR Doc. 00-27386 Filed 10-24-00; 8:45 am]
BILLING CODE 6717-01-M

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