FERC Filings
COMMENTS OF THE ELECTRIC POWER SUPPLY ASSOCIATION IN OPPOSITION TO THE MOTIONS FOR EMERGENCY AND INTERIM RELIEF
I. Introduction
By now, the allegations and concerns raised by the recent activity in California’s electricity markets are well known and the subject of numerous investigations, including the Commission’s own ongoing staff fact-finding investigation. Additionally, on August 23, 2000, the Commission issued an Order in response to the complaint filed by SDG&E in this docket denying SDG&E’s requested $250/MWh cap on all sellers in the California ISO and PX, finding that “there is no record before us to support such an action.”
Due to the lack of a sufficient evidentiary basis for determining whether existing prices are unjust or unreasonable, the Commission instituted consolidated hearing proceedings under section 206 of the Federal Power Act. The Commission intends to consider the results of the FERC staff investigation and, as appropriate, further refine the issues and select a specific 206 hearing form in a subsequent order. The scope of the investigation and hearing proceedings is broad and comprehensive, covering the justness and reasonableness of rates and charges energy and ancillary services in the Cal ISO and PX, as well as the impact of their tariffs, institutional structures and bylaws on the operation of competitive wholesale electric power markets.
Since then, California parties have made “price-cap-of-the-week” filings, asking the Commission to impose, on some sort of expedited basis, various remedies that they claim will alleviate the current problems. The California Electricity Oversight Board (CEOB) sought imposition of a $250 price cap, the California Municipal Utilities Association (CMUA) sought imposition of cost-based rates, and now PG&E, Edison and TURN seek a $100 price cap. On the heels of the CEOB, CMUA and PG&E, Edison and TURN filings, the CPUC filed for “interim relief” proposing load differentiated price caps and requesting that FERC mandate jurisdictional generators and marketers to offer forward contracts for a portion of their resources and SDG&E filed a 17-point plan calling for $100/MWh bid caps and a reorganization of the California ISO Board. Each of these filings was made during the pendancy of the Commission’s initial investigation and before its report is available, even internally.
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