ose puts blame belongs pointing iso favoritism towards dwr cost california billions potential refunds iso role sales rapped critics challenge independence power grid operator david whitney bee washington bureau published aug 3 2001 washington independence california power transmission grid operator electricity sales state department water resources came fire house representatives hearing thursday grid operators said way arms length transactions department water resources could negotiated beginning january power blackouts imminent state buyer money rep doug ose r sacramento chairman house governmental affairs energy policy panel charged prepared statement open hearing cozy relationship dwr california independent system operator could result state forfeiting claim refunds overcharges power generators state interference cal iso possibly cost californians billions dollars potential refunds ose said moreover represents serious violation federal energy regulatory commission regulations issue fact iso run five person board appointed governor federal law supposed independent additionally iso biggest customer dwr buys power using state money firm power deliveries utilities cash starved buy last week ferc determined dwr would entitled rate refunds power contracts reaching decision commission cited agency special access information gave competitive advantage purchasers terry winter iso president chief executive officer said time department water resources began buying power january unusual circumstances buyers willing step keep power flowing homes businesses occurred market functioning winter said creditworthy purchaser purchasing power kevin madden regulatory commission top lawyer said relationship iso department water resources raises troubling questions dwr buying behalf state market participant said iso control room allowed cherry pick among power sellers madden said expects commission rule soon whether iso reconstituted ensure independence bee david whitney reached 202 383 0004 dwhitney mcclatchydc com see story copyright sacramento bee