lay comments ferc power market note ferc meeting today see link checked updates enron lay urges bold solutions power market woes federal energy regulatory commission prepared weigh morning federal government answer california deviled power market free market advocates issued last minute warnings taking price cap route espoused cal iso ferc meeting scheduled start 9 est check http intelligencepress com morning updates letter fired ferc chairman james j hoecker yesterday enron ceo kenneth lay urged commission find fix underlying structural problems power market rather follow steps policy makers placed price cap band aids hemorrhaging wounds lay told hoecker power market halfway across busy street transition monopoly competition stand said ferc make choice falling trap political expediency california iso leaving nation electric system lurch one crisis next r take big step toward fundamental structural reform time electric power supply association epsa called ferc issue emergency cease desist order prohibiting cal iso unilaterally implementing changes current 250 mwh price cap wholesale electricity purchases motion filed monday marketer group specifically asked commission bar cal iso board directors putting effect decision impose fiendishly complex load differentiated price cap 100 less peak season effective nov 3 plan designed state main utility consumer group see daily gpi oct 30 addition epsa urged ferc state explicitly cal iso authority impose extend price bid caps unless expressly authorized commission cal iso current authority set price caps expires nov 15 lay said cal iso complicated new formula caps prices cost gas fired generation making obvious errors failing take account gas transportation costs henry hub power plants california bid cap makes economic generators sell gas supply rather use make electricity california new formula also forces iso market buy power ad hoc basis keep lights capped market fails attract sufficient supplies inevitably lay said addition capped formula invites generators shut production export power state deploy turbines states countries noted iso chairman voted measure state utilities voted presumably knowing full well simply work california latest failure partial compromised open access said lay time commission reject approach power industry nation essential industry mired transition regulated monopoly open access customer choice every step forward compromised concern alienating one vested interest another result utilities free slow interconnection new generation withhold equal access transmission system favor sales competitors miscalculated available transmission capacity exercise control supposedly independent system operators reliability organizations lay predicted installing price caps political expediency would plunge markets greater uncertainty discourage new supplies conservation methods ferc complete work started said lay ensure parties equal fair access transmission ending special priority utility uses system second ferc must require transmission owners separate operation monopoly transmission assets businesses third ferc must take politics transmission system operations revising governance structures ensure independence finally ferc must end reliance shortsighted price caps putting place necessary reforms allow markets operate efficiently encourage conservation attract new supplies epsa said cal iso board acted obvious disregard commission orderly processes permitted make commission decisions alter radically market rules thereby injecting uncertainty confusion market subverting process fashioning fair effective comprehensive remedies california flawed electric markets group noted epsa believes remedial actions taken ferc respect california markets severely compromised cal iso board imposition new prices caps allowed take effect