WASHINGTON - Governmental Affairs Committee Chairman Joe
Lieberman (D-Conn.) Wednesday questioned whether the Federal
Energy Regulatory Commission (FERC) is adequately meeting its
statutory responsibility to provide "just and
reasonable" rates for electricity consumers in California
and the West.
At the second in a series of hearings into the federal
government’s response to problems caused by deregulation of
U.S. energy industries, Lieberman explored the scope and
strength of FERC’s Monday order setting limits on the price of
electricity 24 hours a day, seven days a week, in 11 western
states.
"I’m relieved the Commission has asserted itself more
aggressively to address the severe problems in Western power
markets," Lieberman said. "Although, I am also
concerned that even at this late date it has not done all that
it could. The price limits established by FERC may still be too
high. And ratepayers -- in California and in other states -- may
still deserve refunds for overcharges that have been imposed on
them.
"Monday’s order will constrain some price spikes and
close some loopholes in the previous FERC order. But will it
ensure that electricity prices in the West are just and
reasonable? That is not only the bottom line question, it is the
law."
Lieberman also expressed concern about FERC’s commitment to
enforcing its order.
"In my opinion, the Commission’s record in this matter
raises serious doubts about whether it will adequately oversee
newly deregulated energy markets," Lieberman said. "It
has been very slow in responding to a very real and painful
crisis. While the Commission, by its own admission, has had the
authority to intervene to ensure just and reasonable rates, it
has been surprisingly reluctant to do so.
"It did not initiate a formal investigation of the
Western market, outside of California, until April. In the past,
when it has intervened in response to California’s problem,
the result has fallen short of what the public interest
required.
"I hope that Monday’s order will be more successful,
but I continue to have substantial concerns. I believe the order
addressed the matter of refunds for electricity in an
unsatisfactory and unconvincing manner, and it did nothing for
customers elsewhere in the West. "
Testifying before the Committee were many of the key players
in the Western energy crisis, including Governor Gray Davis
(D-Ca.) and the five FERC Commissioners. Other witnesses
included Senators Patty Murray (D-Wa.), Maria Cantwell (D-Wa.),
and Frank Murkowski (R-Alaska); Governors Judy Martz (R-Mont.)
and John Hoeven (R-N.D.); Washington State Attorney General
Christine Gregoire; and Oregon Public Utilities Commission
Chairman Roy Hemmingway.