Dianne Feinstein: “by now we know that there will not be enough electricity supply to meet demand in California this summer and that there…”

“by now we know that there will not be enough electricity supply to meet demand in California this summer and that there will be significant rolling blackouts. As the peak summer demand for power in the State kicks in over the next few months, the crisis is only going to deepen, and we may see electricity prices in California and the Northwest reach unprecedented levels. And without intervention by the Federal Government, the price gouging that has occurred over the past 6 months will almost certainly continue. In fact, it looks like California will spend 10 times more for power in 2001 than it spent in 1999, an increase from $7 billion to $70 billion. And I predict that if left unchecked, these price spikes will spread to other states as well. But despite the severity and scope of this crisis, the Federal Energy Regulatory Commission, FERC, has failed to take necessary steps to address the problem. Since last August, I have called upon FERC to impose a temporary wholesale price cap or cost of service-based rates on energy prices in the Western market. But FERC, an agency whose sole mission is to regulate the energy market, has refused to act. Today, we introduce this legislation to force FERC to do its job.”