Williams Urges FERC to Turn Deaf Ear to Cal-ISO

The California Independent System Operator's (Cal-ISO) claim that market power has inflated wholesale energy costs in the state by more than $6.2 billion since last May (see NGI, March 26) should be rejected because the figure came from a report that was approved by the organization's illegally formed governing board, contends Williams Energy Marketing and Trading.

The Cal-ISO's governing board, which okayed the $6.2 billion calculation, was "unilaterally selected and seated" by the state and Gov. Gray Davis in "blatant and complete defiance" of the Commission's Dec. 15 order, which called for both FERC and the state to cooperate jointly on the make-up of the board, the marketer said.

The Commission "should direct that all filings made by the ISO will be stricken and rejected until such time as the composition of the ISO board complies with the Commission's Dec.15 order.....Such action will serve as a clear signal to the ISO and market participants that the Commission fully intends to enforce its orders and will not tolerate blatant violations of its directions," Williams told FERC [EL00-95-102].

If FERC were to "acquiesce to such legitimacy by not striking filings submitted by the ISO, such as the present one, the Commission's authority will be greatly diminished and a dangerous precedent will be established --- such Commission action (or inaction) opens the door for jurisdictional entities to simply flout a future order of the Commission, with apparent impunity."

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