strange bedfellows senators dianne feinstein gordon smith announce partnership response western energy crisis march 15 2001 washington dc senators dianne feinstein ca gordon smith r today announced agreement introduce bipartisan legislation restore stability reliability western energy market directing federal energy regulatory commission ferc impose temporary reasonable wholesale rate cap cost service based rates legislation also require states involved effort pass cost electricity retail customers however states would able determine would done words california could choose use tiered pricing real time pricing set baseline rate prices would passed piece legislation fix broken electricity market provide period reliability stability wholesale energy costs senator feinstein said ferc found wholesale prices charged california unjust unreasonable legislation essentially mandate ferc makes finding agency carry regulatory role 175 million year agency regulate energy marketplace federal government provide period reliability stability time crisis unfortunately ferc refused california broken electricity market result flawed 1996 california law deregulated wholesale costs left place caps retail prices coupled requirement utilities divest generating capacity buy electricity spot market prices escalated dramatically hindsight came together catastrophic scenario today california buys electricity astronomical prices believe ferc needs act help restore reasonable costs stability marketplace