The reaction to Monday’s failure to obtain a federal mediated wholesale electricity settlement from a California state legislative leader and the state’s largest investor-owned utility were mixed, but both resolved that the state’s stakeholders will move on, seeking relief from what are alleged to be excessive charges from merchant generators/suppliers over the past months.

“California spoke with one voice in these (Federal Energy Regulatory Commission) proceedings, adamant that we receive substantial refunds, while taking seriously our responsibility to negotiate in good faith,” said state Assembly Speaker Robert M. Hertzberg. “Regrettably, our counterparts refused to even acknowledge the inescapable fact that they have profited enormously by exploiting a dysfunctional market — at California’s expense.”

Pacific Gas and Electric Co., the San Francisco-based utility now in Chapter 11 federal bankruptcy court proceedings, said it remains “committed to working to ensure that California consumers will pay just and reasonable costs for electricity.”

The utility expressed appreciation to both the FERC and its chief administrative law judge Curtis Wagner for providing the forum, noting that over the 15 days, “parties have engaged in useful dialogue that has produced a better understanding of the various positions and options for resolution.” The PG&E utility said the talks should provide a “solid basis” for further negotiations and as assistance to FERC in its decision-making.

Hertzberg, however, said the failure of the FERC talks was no surprise to him, and he pledged to continue pushing for “the full measure of relief required by law” for California electric consumers.

Meanwhile, Gov. Gray Davis appeared to believe that the FERC judge had agreed to the validity of California’s calculation of $8.9 Billion in revenues, despite the judge’s statement that any overcharges were not likely to exceed a billion dollars, and much of that could be offset by monies owed to the generators.

The governor said the issue will be forwarded to the FERC commissioners for action, and he reiterated his long-standing claim that they have no other legal choice other than to grant the state’s full request for refunds.

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