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Date: Wed, 01 Nov 2000 15:52:06 -0600
From: "Tracey Bradley" <tbradley@bracepatt.com>
To: <asettanni@bracepatt.com>, "Charles Ingebretson" 
<cingebretson@bracepatt.com>, 
<cshoneman@bracepatt.com>,<dwatkiss@bracepatt.com>, <gfoote@bracepatt.com>, 
"Gene Godley" <ggodley@bracepatt.com>, <jjava@bracepatt.com>, 
<kcurry@bracepatt.com>, "Marc Hebert" <mhebert@bracepatt.com>, 
<mhenry@bracepatt.com>, "Paul Fox" <pfox@bracepatt.com>, 
<rcarroll@bracepatt.com>, <rrich@bracepatt.com>, <tbradley@bracepatt.com>
Cc: "Nancy Pickover" <npickover@bracepatt.com>
Subject: Nov. 1, 2000 DOE Press Release re Clinton/Gore Initiatives to Assist 
California
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Administration Helps Electricity Consumers by Proposing Reliability Standards 
and Working to Lower Costs

Clinton/Gore Administration Takes Action to Help Californians

Secretary of Energy Bill Richardson today announced a series of initiatives 
that the Clinton/Gore Administration is taking to help California reduce the 
strain on their electricity system and protect consumers. Most significantly, 
Richardson said the Administration will likely send a proposed rule-making to 
the Federal Energy Regulatory Commission (FERC) to establish mandatory 
reliability standards for electricity * doing administratively what Congress 
failed to accomplish this year.

"California's electricity market has become dysfunctional -- and it's time to 
make it right," said Secretary Richardson. "More than once, California was 
close to having blackouts rolling throughout the state. In San Diego, 
residents and businesses saw their electric bills double almost overnight. 
Consumers need an electricity system that is reliable and they should not be 
facing this kind of price volatility."

Richardson made the announcement in Sacramento this morning with California 
Gov. Gray Davis.

Richardson said the Energy Department will take several initiatives to help 
the reliability of California's electricity system and protect consumers from 
dramatic price volatility, including:


Establish mandatory reliability standards for electricity * The Energy 
Department will seek public comment on a proposed rulemaking that would 
require utilities to follow mandatory rules to protect the reliability of the 
electric grid in California and elsewhere. The Administration and others have 
been pressing Congress to enact these much-needed rules to protect consumers. 
The purpose of this rulemaking is to break the impasse in Congress and 
authorize establishing the standards necessary to make electricity supplies 
more reliable and energy markets more efficient;

Improve California's ability to import power * The Western Area Power 
Administration, an Energy Department agency that co-owns a major substation 
in Northern California, will provide $2 million to add a second transformer 
there. This will help California bring in much-needed power from the Pacific 
Northwest;

Provide millions to improve energy efficiency * The department is releasing a 
half million dollars in grants to the California Energy Commission to support 
programs that will make California buildings, which account for approximately 
8 percent of all the energy used in buildings in the U.S., more energy 
efficient. In addition to the $3.7 million the Energy Department has provided 
the state this year to help weatherize 3,081 lower-income California 
households, the department will provide $4.2 million next year to weatherize 
homes and help lower the electricity bills of those that can least afford 
high prices;

Work to add renewable sources * The department is working with the state and 
local governments to help develop the tremendous renewable resources in 
California, such as wind, solar, geothermal and biomass. To this end, 
Richardson said the department's budget for next year contains $3 million for 
wind projects and $5.6 million for geothermal projects in California;

Reduce electricity consumption at key times * Participate, along with 
representatives from other federal agencies with facilities in California, in 
meetings in Sacramento today to develop a process for reducing electricity 
consumption during heat waves; and

Get federal power to California * Continue the work of the department's 
Bonneville Power Administration and Western Area Power Administration with 
California to get federal power to the state when it is needed the most. 
Richardson announced that Bonneville's contract to provide low-cost power to 
Bay Area Rapid Transit will continue;

Further cooperation with California * The Energy Department will also form a 
partnership with the state of California to ensure that the department's 
programs and resources are put to use to help the state with its electric 
problems.

Separately today FERC released a report that examines the causes of 
California's electricity problems. FERC also issued a proposed order that 
will help reduce wholesale electricity prices in California. Richardson urged 
the Commission to move quickly to help protect California's citizens and 
businesses.

Media Contact: April Kaufman, 202/586-5806

Release No. R-00-283