Robert Smith: “today I am filing an amendment to S. 287, bill to direct the Federal Energy Regulatory Commission to impose…”

“today I am filing an amendment to S. 287, bill to direct the Federal Energy Regulatory Commission to impose cost-of-service based rates on sales by public utilities of electric energy at wholesale in the western energy market. My amendment would clarify the circumstances under which the Commission may impose interim limitations on the cost of electric energy, and provide a sunset date. While I applaud my colleague's efforts to help restore stability to the wholesale electricity market on the west coast, I believe S. 287 continues to insulate retail customers in California from the energy crisis in a way that is hampering conservation and investment in new generation. By contrast, my constituents and energy-sensitive businesses in Oregon are already feeling the effects of the price volatility in the west. Utilities in the northwest are facing current rate increases of eleven to fifty percent. The customers of the Bonneville Power Administration are facing the prospect of 95 percent rate increases beginning in October, when current contracts expire. I know that there is significant support for short-term wholesale price caps for the entire western market. However, that doesn't address what is still going on in California, where retail prices are capped at a level that is insulating consumers from the price shocks being felt by the rest of the West.”