According to Reliant Energy, FERC Action on Credit Will Increase Supply and Decrease Costs of Power in California.Business Editors HOUSTON--(BUSINESS WIRE)--April 6, 2001 From the beginning of the power crisis, Reliant Energy Reliant Energy, Inc., based in Houston, Texas, is a non-utility, retail and wholesale electricity provider. In Texas, it provides service to nearly 1.9 million retail electricity customers, including residential and small business customers and commercial, industrial, has maintained that a crucial step to solving California's energy problem is establishing financial stability and ensuring that the California Independent System Operator (ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. ) -- or any buyer -- is creditworthy cred·it·wor·thy adj. Having an acceptable credit rating. cred  it·wor .
Today, the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ) validated this by acknowledging that the ISO must supply credit provisions for all energy purchases, or generators cannot be obliged to supply power -- a key factor in the ISO's tariff. "Our position has always been that enforcement of the tariff's credit provisions is essential to a stable California energy market," said Jack Farley, Reliant Energy Western Region President. "Since the power crisis began, we have remained ready, willing and able to honor dispatch requests from the ISO," said Farley. "We simply want an assurance of payment for the power we provide." Today's FERC order comes the day after the Ninth Circuit Court of Appeals issued a stay of a preliminary injunction A temporary order made by a court at the request of one party that prevents the other party from pursuing a particular course of conduct until the conclusion of a trial on the merits. A preliminary injunction is regarded as extraordinary relief. that required Reliant to honor dispatch requests without credit assurances. "Throughout this litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , Reliant has maintained that the FERC is the appropriate body to address these issues, not the courts. Today's FERC order confirms this view," said Michael Jines, Vice President and General Counsel of Reliant's Wholesale Group. "Without question, the lack of creditworthy buyers for energy delivered through the ISO has impaired the ISO's ability to secure energy, especially from suppliers out of state," said Farley. "As a result, the ISO has been overrelying on in-state generators to meet its requirements. "Today's order should strengthen the ISO's ability to secure new supplies by giving potential sellers assurances of payment for deliveries. The order should also lower consumer prices by increasing supply and reducing credit risk premiums. With summer fast approaching, increasing supply is critical." |
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