ferc restructures cal iso ferc action appears appropriate remedy know good fix utilities senator feinstein like ferc restructures california power market responding california power market gone haywire teetering brink operational financial disaster ferc friday issued series remedial measures virtually stripping cal px cal iso control market calling market stakeholders together negotiate bilateral forward contracts commission main action effective issuance order friday afternoon meeting removes requirement california utilities buy sell exclusively california power exchange cal px clears way bi lateral contracts forward market ferc scheduled settlement conference dec 19 washington parties state power market negotiate contracts california benefit competitive market chairman james hoecker said noting heard state power market called crisis design design unworkable state law product command control described detail exactly market function competition hoecker said time get serious saving future competitive markets competition fail principle either wholesale retail level never well conceived tried version competition disaster commissioner william massey defended federal energy regulatory commission backing away price caps rather cap spot market created state california order would simply shrink size diminish influence give back participants ability find right price ability california taken away market massey said action would allow bilateral transactions support forward contracts allow parties manage risk urged california public utilities commission step responsibilities supporting ferc directed activities massey said transfer wealth described apocalypse california absolutely staggering two largest utilities virtually bankrupt predicted court acting accepted law precedent would eventually rule utilities entitled recover costs customers spreading costs entire state pg e corp officials lambasted commission actions saying left california electric customers exposed price gouging future electric supply reliability uncertainty california wholesale market broken extremely disappointed insufficiency today ferc order pg e officials said statement remedies outlined order go nearly far enough provide solution ensures reliability state electric supply equally importantly provides relief future price gouging northern california utility company said pg _ elimination requirement california three investor owned utilities pacific gas electric san diego gas electric southern california edison sell power cal px buy power cal px took effect friday _ return 25 000 mw generation state regulation _ termination cal px wholesale rate schedule effective close trading day april 30 2001 _ create benchmark price wholesale bilateral contracts assess prices five year energy supply contracts _ create penalties underscheduling power loads _ requirement market participants schedule 95 load prior real time violators incur penalties scheduling deviations exceeding greater 10 mw 5 hourly load _ begin market monitoring price mitigation cal iso px spot markets ferc hold technical conference develop monitoring mitigation program proposed plan submitted march 1 measure place may 1 _ single priced auction used bids 150 mw bids 150 mw set market clearing price although subject ferc reporting requirements _ replacing current cal iso stakeholder governing board non stakeholder board jan 29 2001 cal iso governing board members required turn decision making power operating control management cal iso members permitted function advisory capacity new board selected ferc discuss california representatives process selecting new cal iso board members _ modify interconnection procedures iso utilities must file generation interconnection procedures