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FERC Judge Rips Calif, Generators; Demands Sales Data		
		
		06-29-01??06:05 PM EST ??by?Bryan Lee ??|?Of DOW JONES NEWSWIRES 
		WASHINGTON -(Dow Jones)- The U.S. Federal Energy Regulatory Commission judge 
overseeing settlement talks between California and power sellers ripped into 
both sides Friday in an effort to spur progress in the moribund negotiations, 
according to sources. 
		"It's fair to say that everybody got their rap on the knuckles," said one 
source. 
		Curtis Wagner, FERC's chief administrative law judge, read a statement during 
the confidential settlement negotiations dressing down California regulators 
and market institutions for a lack of political independence. 
		Wagner, in what one source described as a "tirade," complained that the 
California Independent System Operator's politically appointed board, headed 
by Michael Kahn, lacks necessary independence as a market institution. 
		Further, Wagner complained that the California Public Utilities Commission 
and investor-owned utilities in the state were deferring too much to the 
politically compromised Kahn in negotiations. 
		The lack of independence was such a "joke" that the parties might as well 
wear "clown suits," Wagner said, according to those familiar with his 
comments. 
		However, Wagner didn't spare the power providers from strong criticism. 
		He took generators to task for exercising market power and deriving obscene 
profits, the sources said. 
		Sources described the incident as perhaps a ploy by Wagner to jump-start the 
fast-track settlement talks, scheduled to conclude July 9. 
		California Gov. Gray Davis is demanding nearly $9 billion in refunds for 
power sales in California during the past year. 
		As the negotiations got underway Monday, Wagner dismissed that amount as too 
high, suggesting a more reasonable figure of between $1 billion to $2.5 
billion. However, California ISO Chairman Kahn has held fast to Davis' demand 
for $9 billion. 
		Wagner instructed the negotiating parties to work during the weekend to 
develop concrete figures on power sales, revenue, costs and proposed refund 
amounts for his consideration on Monday, according to the sources. 
		-By Bryan Lee, Dow Jones Newswires; 202-862-6647; Bryan.Lee@dowjones.com 
		(This story was originally published by Dow Jones Newswires) 
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