Pete Stark: “California is facing an energy crisis. This problem is not one that California can solve without the help of Federal…”

“California is facing an energy crisis. This problem is not one that California can solve without the help of Federal intervention. The root of the California energy crisis is the soaring wholesale rates for electricity. The spot market price of electricity has increased from $30 per megawatt hour in 1999 to $300 in 2001. Energy prices have soared as high as $1,900 per megawatt hour. For a point of comparison that many of us can better relate to: if the price of a gallon of milk increased at the same rate as California's energy prices, milk that now costs $3 per gallon would cost $190 per gallon. Energy costs are a real problem facing California and our western neighbors. The Inslee-Pelosi amendment can remedy this problem but the Republican leadership will only allow debate on the amendment-- they will not allow a vote on the amendment. Many critics will tell you that price caps hurt the market and will stifle new electrical power generation. However, the Inslee-Pelosi amendment exempts new generating facilities to ensure that the pricing mechanism does not provide a disincentive to new energy generation.”