call west wide mitigation plan obtained copy letter representative tauzin others ferc chairman hebert appears could provide indication direction ferc take order plans issue next monday summarizing letter calls comprehensive plan price mitigation monitoring within entire wscc plan prohibit unnecessary outages noncompliance sales agreements refunds penalties charging rates compliance mitigation plan adopt market mechanisms rather imposing rigid price controls allow recovery verifiable costs promote conservation demand response please see details june 12 2001 honorable curt h bert jr chairman federal energy regulatory commission 888 first street ne washington dc 20426 dear chairman h bert since last summer committee energy commerce closely monitored electricity situation california today west continues suffer second worst drought century california faces threat blackouts potential price spikes summer extensive review energy crisis west including several hearings washington california recommend commission take actions help mitigate wholesale electricity prices keep power flowing california recognize commission efforts recent months address electricity crisis california western markets including measures investigate mitigate wholesale electricity prices pleased current trends show reduced demand lower prices throughout west remain concerned potential impacts high wholesale electricity prices consumers economic growth california entire west hot summer months come ensure prices reasonable critical months ahead believe commission mitigate wholesale electricity prices western markets strongly urge commission implement comprehensive plan mitigate wholesale prices aggressively monitor wholesale sales electric energy public utilities market participants within entire western systems coordinating council wscc specifically plan ensure rates wholesale electricity sales reasonable markets throughout wscc plan also prohibit unnecessary generation outages failures comply agreements sell power commission finds rate charged comply price mitigation plan strictly enforce plan require refunds penalties full extent allowed law aware danger discouraging supply commission relied upon market oriented methods rather imposing rigid price controls would exacerbate crisis increase likelihood blackouts share commission concerns regarding need encourage supply accordingly prevent blackouts contribute long term solution commission comprehensive plan adopt market mechanisms appropriate allow recovery verifiable costs avoid discouraging availability supply investment new generation transmission mitigate prices increase available supply also urge commission take every additional step within authority promote conservation demand response throughout western market states retail rates fully reflect wholesale costs consumers less incentive conserve demand reduction incentives substitute accurate price signals demand response program encourage conservation retail wholesale rates parity program provide incentives opportunities wholesale retail consumers sell market incentive prices foregone electric load would otherwise expected consume specifically commission 1 establish certify wholesale clearinghouse demand reduction agreements 2 enable consumers whether individually aggregation arrangements sell foregone power local distribution utility third party purchasers recognize individual states utilities implementing demand reduction programs broader regional solution needed enable sufficient demand reductions time expected hot summer understand program implemented without preempting state laws abrogating existing contracts shifting costs non participant consumers look forward working build upon commission previous efforts ensure reliable power supplies reasonable prices consumers california west summer thereafter ensure maximum relief western consumers months ahead request take appropriate action consistent recommendations soon possible request respond recommendations writing later close business friday june 22 questions please contact staff thank advance cooperation request sincerely w j billy tauzin chairman committee energy commerce joe barton chairman subcommittee energy air quality heather wilson member committee energy commerce george radanovich member committee energy commerce mary bono member committee energy commerce greg walden member committee energy commerce william thomas jerry lewis duncan hunter randy duke cunningham ken calvert stephen horn edward r royce doug ose darrell e issa