Tucson Electric Power Co. contends that California Gov. GrayDavis’ decision to “commandeer” block forward contracts betweenbuyers and sellers in the Power Exchange and transfer them to thestate violated FERC jurisdiction, was illegal and showed littleconcern for the market.

“Gov. Davis, by commandeering these assets without any regardfor the potential adverse impacts of this action on the regulatoryauthority of this Commission, and without regard to the adversefinancial impacts on Tucson Electric, its ratepayers, and otherout-of-state market participants, has shown little concern forbalancing the needs of all stakeholders participating in theCalifornia electricity markets. Rather, [he] has sacrificed thelarger public interest based on his assessment of what is in thebest interest of only one group of stakeholders —- California’sretail ratepayers,” Tucson Electric said in a complaint filedTuesday.

It called on FERC to “void the unconditional transfer of thecontracts” to the state, and/or place “appropriate conditions” onthe transfer to ensure that there is no adverse impact on rates,regulation or competition within the wholesale power market.

Tucson Electric asked the Commission to “find that,notwithstanding any power that Gov. Davis may have under Californiastate law to seize assets, when the assets to be seized are FERCjurisdictional, the supremacy clause of the United StatesConstitution mandates that the public interest requirements of the[Federal Power Act] be met.”

Lastly, it requested that the PX be ordered to enforce therates, terms and conditions of its FERC tariffs, which require itto immediately collect from Pacific Gas and Electric and SouthernCalifornia Edison “all monies due for wholesale sales to date.”

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