Political repercussions from California’s high-priced heat wavereached all the way to Washington’s White House last week as Gov.Gray Davis asked President Clinton to pressure the Federal EnergyRegulatory Commission to “accelerate its investigation of wholesaleenergy prices in California.”

The governor’s letter was sent Thursday as lawmakers in anacrimonious joint state legislative session struck out in alldirections, looking to lay blame and find a fix for the powershortage situation which has rocketed electric prices in the state.On Friday, after a week of somewhat milder weather, the heatreturned and California again went to a Stage Two ElectricalEmergency in which utilities are asked to cut 500 MW ofinterruptible load.

Davis said it was “extremely important” that FERC’s inquiry bespeeded up and “that the investigation and related proceedings beconducted on a formal evidentiary basis. It is also important thatrefunds to customers be made immediately upon a determination thatrates are not just and reasonable. It is my understanding that thisinvestigation can be completed within 30 to 60 days.”

Noting that “San Diego consumers have paid an enormous price forderegulation in a market that no one believes is functionallycompetitive,” the governor outlined the measures he had taken onthe state level to ameliorate the situation. “But the outrageouswholesale prices being charged by out-of-state generators makes anyrate stabilization plan a difficult and expensive endeavor.”

In the joint state legislative session earlier Thursdaystate/federal regulators, third-party transmission grid and marketoperators, academics, private/public sector utilities,environmentalists, consumer groups and merchant power plantdeveloper/operators testified amid repeated questions and speechesfrom San Diego lawmakers. (see Daily GPI, Aug. 11)

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