See the attached press release from the Department of Energy on the
changes to California's electricity market.


	
	
	RELEASE DATE:  November 01, 2000 ???? Print Friendly VersionPrint Friendly 
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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.