early news on the california situation breaking news : california stakeholders agree to key objectives
posted 10 : 18 am ( cst ) jan 10 , 2001
signs of compromise and cooperation emerged from a marathon seven - hour
meeting last night between california government officials , power industry
executives and the clinton administration on california ' s continuing energy
crisis . a set of key principles were hammered out by the two dozen
participants , according to a statement issued following the meeting .
the stakeholders agreed on the need for cooperation to " maintain stability
and avoid bankruptcy of california utilities and assure the long - term
regularity of market conditions . " the utilities have amassed $ 12 billion in
unrecovered wholesale power costs , and despite the recent approval of new
rate surcharges the utilities remain on the brink of financial insolvency .
the meeting participants agreed on a few crucial elements of a solution to
california ' s power woes , including the following : development of approaches
to promote long - term purchases of power , possibly by the state , from
generators at an " attractive fixed rate ; " the willingness of generators and
qualifying facilities and marketers to provide on a short - term basis
" forebearance of amounts owed by pacific gas the need to find " satisfactory
approaches " to the utilities ' obligations to purchase power ; cooperation to
" better match supply and demand ; " and review of the existing qualifying
facilities payment structures .
working groups are meeting today in washington , d . c . to address additional
technical details and the senior policy makers will reconvene this weekend to
complete an agreement .
ferc chairman james hoecker , said it was " to early to declare victory , " but
it was " an important first step to try to find ways to maintain stability and
avoid bankruptcy . " hoecker , who also announced today that he will be leaving
the federal energy regulatory commission on jan . 18 , said the atmosphere at
the meeting was highly cooperative . " they appear to be headed in the
direction that would seem to be consistent with ferc ' s dec . 15 order , " he
said .