Revocation of Market-Based Authority Sought for 18 CA Plants

Rep. Bob Filner (D-CA) has called on the Federal Energy Regulatory Commission to revoke the authority of 18 power generation facilities in California to sell electricity at market-based rates.

"Each of the [facilities] was required, as a condition for the authority to sell at market-based rates, to demonstrate that they did not possess market power in the California generation market," Filner wrote in a recent letter to FERC Chairman Curt Hebert. But "it is clear that these firms do, in fact, have market power and therefore do not satisfy the prerequisite for [such] authority..."

The 18 facilities are owned by five power companies --- Williams Energy, Reliant Energy, Dynegy, Duke Energy and Mirant (formerly Southern Energy) --- which Filner claims control the generation capacity and the power prices in the state. The five companies provide a total of 17,000 MW of gas-fired generation capacity to the California market, with each supplying an equal share, he noted.

"The reality is that these five companies enjoy significant market power in the California generation market, and do not qualify and should not be permitted to sell at market-based rates. Each of the firms has misrepresented [to FERC] its market power," Filner charged.

The companies knowingly made false affidavits, declarations and/or presentations to FERC attesting to their lack of market dominance in California, he further said. "These factual presentations, and their related false opinions, were carried through the United States Mail. Accordingly, I am also providing a copy of this letter to the Federal Bureau of Investigation, and [am] requesting that the FBI open a mail and wire fraud investigation..."

The 18 generation facilities targeted by Filner include: AES Alamitos LLC, AES Redondo Beach LLC, AES Huntington Beach LLC, Cabrillo Power I LLC, Cabrillo Power II LLC, Duke Energy Morro Bay LLC, Duke Energy Moss Landing LLC, Duke Energy Oakland LLC, Duke Energy South Bay LLC, El Segundo Power LLC, Elwood Energy LLC, Long Beach Generation LLC, Reliant Energy Coolwater LLC, Reliant Energy Etiwanda LLC, Reliant Energy Mandalay LLC, Reliant Energy Ormond Beach, Mirant Delta LLC and Mirant Potrero LLC.

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