Senate Energy Chairman Frank Murkowski yesterday took anothershot at what’s fast becoming his favorite target — FERC. Hechided the Commission for failing to take punitive action againstelectric utilities that “improperly” took power from the grid lastsummer.

“I think they should [have]…..assessed some kind ofappropriate fine or whatever other authority that they felt wasnecessary, but to just say ‘shame on you’ I don’t think is adequateor reasonable,” the Alaska Republican said following a speech tothe annual meeting of United States Energy Association inWashington D.C.

“If they [FERC] haven’t got the teeth to enforce it, they shouldask Congress for the legislative authority to enforce it,” he toldreporters. “I think they had the capability to enforce it [lastsummer], but they didn’t do it.”

Murkowski emphasized the ball’s in the Commission’s court. “It’snot up to us [Congress] to figure out all the cures…..They spendall their time on this area and they know” what’s needed to ensuregrid reliability this summer.

He also again criticized FERC for “dragging [its] feet” withrespect to approving the proposed Independence Pipeline to theNortheast. Murkowski believes the natural gas pipeline, which wouldbring Canadian gas supplies from the Midwest to the Northeast,would provide “some relief” to Northeast customers who dependheavily on fuel oil.

FERC’s “got an obligation in their ruling [on Independence] toaddress the economic feasibility [of the project]. They’re notsupposed to give anything away, but if an area of the country needsan alternative source, I think they should make every effort to tryand make sure the economics fit,” he said.

The reverberations of the Commission’s decision on Independencewill be felt this summer, he warned. “Wait until they feel theimpact this year when the air conditioners go on in the Northeast,and those power generating plants that depend on oil have to paytwo to three times what they paid this year. That’s going to affectthe consumer.”

Murkowski further noted Senate Majority Leader Trent Lott (R-MS)intends to introduce this week the “National Energy Security Act of2000,” which will include a mix of energy proposals aimed atsignificantly reducing U.S. dependence on oil imports by 2010.

The proposals will seek to promote the use of natural gas byremoving certain disincentives, open up the Arctic Coastal Plainarea to energy development, open up the Overthrust region in theMidwest to oil and gas drilling, provide royalty relief forfrontier areas, establish a home heating fuel reserve in theNortheast, offer incentives for clean coal technology and a numberof other measures. “We’ve just included what we think is importantin the energy package,” Murkowski said.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.