[Congressional Record Volume 147, Number 7 (Monday, January 22, 2001)]
[Senate]
[Page S298]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself and Mrs. Boxer):
  S. 26. A bill to amend the Department of Energy Authorization Act to 
authorize the Secretary of Energy to impose interim limitations on the 
cost of electric energy to protect consumers from unjust and 
unreasonable prices in the electric energy market; to the Committee on 
Energy and Natural Resources.


          amending the department of energy authorization act

  Mrs. FEINSTEIN. Mr. President, I am pleased to introduce this bill 
today to address problems with the California energy market and the 
unwillingness of the Federal Energy Regulatory Commission to take the 
necessary action.
  Last week, the lights went off in California and the governor 
declared a state of emergency. More than 1 million businesses and 
homeowners throughout the state lost power. Computers shut off, ATMs 
stopped dispensing cash, traffic lights went dark and heaters went 
cold, jeopardizing public safety, the economy, and people's lives.
  The situation continues to worsen, and the prognosis for the future 
is dire. Unfortunately, the problem is not just limited to California. 
PG&E and Southern California Edison, our two largest blue chip 
utilities are on the brink of bankruptcy and have lost billions. The 
state's economy has also lost billions from work stoppages that seem to 
occur every single workday.
  As goes California so goes the rest of the country, I believe. 
California is the 6th largest economy in the world. Already financial 
institutions and banks that have underwritten the debts of our 
utilities are being saddled with their own problems due to the 
uncertainty over whether they will be paid.
  Those who believe that California deserves its present plight because 
of the state's deregulation bill are near-sighted. California passed a 
very flawed de-regulation bill in 1996. It was flawed because it relied 
almost entirely on a free market and assumed that there will always be 
adequate energy supply. What has resulted is an uncompetitive market 
and an absence of adequate supply.
  I believe California shares a major responsibility here and I am 
encouraged that the state legislature is beginning to take action. 
However, the federal government also has a major responsibility because 
the Federal Energy Regulatory Commission under the Federal Power Act 
holds the only authority over energy generators and marketers. The 
state cannot address this.
  Unfortunately, the FERC, even after concluding that rates in 
California are ``unjust and unreasonable,'' has failed to take the 
necessary action to solve the crisis. I am thus proposing legislation 
today to empower the Secretary of Energy to take the same action 
available to the FERC in instances when FERC has failed to take 
decisive action. Individual states would be able to opt out of any 
order from the Secretary as this bill is aimed at helping those states 
that need and want help.
  I urge the Senate to take up and pass this bill as soon as possible.
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