California Consumers Endangered by FERC Decision, Says California Municipal Utilities Association.Business/News Editors SACRAMENTO, Calif.--(BUSINESS WIRE)--Dec. 18, 2000 "Apparently joining the cult of the mystical competitive electricity market, the FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability has completely abrogated its statutory obligation to protect electricity consumers and assure just and reasonable rates. In its order adopted Friday, mistitled 'Remedies for California Wholesale Electric Markets' FERC only assured continued enrichment of generating companies at the expense of electricity consumers," said Jerry Jordan, executive director of the California Municipal Utilities Association. CMUA CMUA California Municipal Utilities Association CMUA Central Maryland Ultimate Association CMUA Certificate Management User Agent is a trade association representing publicly owned Publicly owned can refer to:
CMUA had urged FERC to reestablish cost-based wholesale rate regulation as the only feasible means of protecting consumers until such time as an adequate supply of electricity is available. FERC not only failed to employ the tools required to assure just and reasonable rates, they eviscerated the remaining limited, albeit inadequate element of consumer protection. FERC also hasn't addressed aberrations in the natural gas market, which have seen wholesale natural gas prices in California skyrocket sky·rock·et n. A firework that ascends high into the air where it explodes in a brilliant cascade of flares and starlike sparks. intr. & tr.v. in the last few months. This not only increases heating bills, it further drives up the cost of electricity. "The net result is the continuation of an enormous transfer of wealth out of California to stuff the already bulging bulge n. 1. A protruding part; an outward curve or swelling. 2. Nautical A bilge. 3. A sudden, usually temporary increase in number or quantity: pockets of out-of-state (Texas) generating companies. California's economy will be dragged down if swift and sure action is not taken soon, and it seems that FERC has decided that they won't take it," said Jordan. While CMUA will join others in California to press upon FERC the error of its ways, CMUA will also be working with the Governor, the Legislature and various interested parties in the state to reestablish state control over California's power supply. Among the measures that CMUA believes should be seriously considered are: 1.) Significantly ratcheting up existing demand-side efforts, including energy efficiency, demand management, voluntary load shedding and possibly a real-time pricing option; 2.) Disciplining the market by procuring Procuring, in general, is the act of acquiring goods or services, usually by contract. It may refer to:
reliability at cost, either through state ownership, rate-based utility ownership or contracts; 3.) Establishing a publicly owned transmission company, perhaps as a non-FERC-jurisdictional state agency to take over some of the functions of the 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. as well as build necessary upgrades and own and operate the high voltage The term high voltage characterizes electrical circuits, in which the voltage used is the cause of particular safety concerns and insulation requirements. High voltage is used in electrical power distribution, in cathode ray tubes, to generate X-rays and particle beams, to grid. |
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