Statement From Cal-ISO CEO Jeffrey Tranen in Response to FERC Price Cap Decision.FOLSOM, Calif.--(BUSINESS WIRE)--July 17, 1998--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. ("Commission") issued an order addressing the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ISO's "Emergency Motion for Stay, Notice of Action Taken, Request for Rehearing rehearing n. conducting a hearing again based on the motion of one of the parties to a lawsuit, petition or criminal prosecution, usually by the court or agency which originally heard the matter. , and Motion for Clarification" filed on Monday, July 13, 1998. The Commission accepted the ISO's proposal to cap prices it will pay to bidders that have been granted market-based rate authority for Regulation, Spinning, Non-Spinning and Replacement Reserves for an interim period of time until the Commission can gather additional information. Given the interim authority provided to 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. , the Commission found the Stay of FERC's prior orders unnecessary and denied it, stating: -0-
In view of the serious concerns raised by these parties we
believe that further fact finding is necessary. In the
interim, the ISO's rejection of bids in excess of whatever
price levels it believes are appropriate for Regulation,
Spinning, Non-Spinning, and Replacement Reserves are
authorized as reasonable. The price levels could be based on
costs, market or any factor the ISO determines will attract
sufficient bids into the markets.
-0- The FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability also accepted the ISO's proposal to have its market surveillance committee monitor the market and take actions to implement adjustments to the price level, based on the recommendations of the market surveillance committee. The ISO is required to give advance notice to all market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. of any adjustment of the price at which the ISO will accept bids in its ancillary Subordinate; aiding. A legal proceeding that is not the primary dispute but which aids the judgment rendered in or the outcome of the main action. A descriptive term that denotes a legal claim, the existence of which is dependent upon or reasonably linked to a main claim. service markets. The FERC directed both the ISO and California Power Exchange market surveillance committees to each conduct an independent study of the bidding behaviors and structural characteristics of the markets that they administer. These studies must be filed with the FERC by August 17, 1998. The ISO appreciates FERC's prompt action in dealing with this difficult market situation. The ISO is taking prompt action to comply with the directives contained in the order, and to find long-term solutions to these market issues. This issue will addressed at the ISO Board of Governors upcoming public meeting on July 22-23, 1998.
CONTACT: Patrick Dorinson, 888/516-NEWS
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