[Congressional Record Volume 147, Number 91 (Wednesday, June 27, 2001)]
[Extensions of Remarks]
[Page E1235]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       INTRODUCTION OF ENERGY MARKETING MONITORING ACT--H.R. 2331

                                 ______
                                 

                           HON. STEPHEN HORN

                             of california

                    in the house of representatives

                        Wednesday, June 27, 2001

  Mr. HORN. Mr. Speaker, for the past year, the energy markets in 
California have been in a state of turmoil that has produced periodic 
blackouts, soaring prices for electricity and natural gas and a deep 
uncertainty about energy supplies for the future. In addition to those 
serious concerns, there have been a wide range of charges that energy 
suppliers are engaging in illegal collusion to fix market prices and 
gouge consumers.
  Earlier this year, on January 22nd, I asked the General Accounting 
Office, our nonpartisan and highly professional source for detailed 
information on many subjects, to investigate what was happening in 
California and to provide an overview of information on prices and 
impacts on consumers, producers and electricity providers. I also 
requested information on the causes of price increases and problems 
with the reliability of energy supplies. Finally, I requested 
evaluation of actions taken by the Federal Energy Regulatory 
Commission, the state of California, and other parties involved.
  Although GAO has been able to provide preliminary information 
regarding California's supply, demand, and market problems, there has 
been a significant problem in obtaining the detailed market information 
necessary for comprehensive analyses or evaluation. GAO interviews with 
these market participants have yielded only general information and it 
is unclear at this time whether FERC has in its possession 
comprehensive market data.
  In short, Mr. Speaker, at a time when Congress is wrestling with the 
complex and highly technical issues involved in both the California 
market and national energy supply, our own expert agency has limited 
access to the information it needs to provide analysis of what is 
happening and recommendations on what should be done to change federal 
laws and regulations.
  In creating the Federal Energy Regulatory Commission (FERC) in 1977 
under the Department of Energy Organization Act, Congress did not 
explicitly address the Comptroller General's (GAO's) authority to 
request and subpoena information from any body subject to FERC 
jurisdiction. Today, I am introducing legislation to correct this 
problem by making clear that the GAO and the Comptroller General have 
the authority to request and subpoena information from energy companies 
or other participants subject to the jurisdiction of the Federal Energy 
Regulatory Commission.
  This legislation clarifies the functions of the Comptroller General 
to include:
  Monitoring and evaluating the functions and activities of FERC.
  Access to market information from those subject to FERC jurisdiction 
including energy prices, costs, demand, supply, industry and market 
structure, auction processes, and environmental impacts.
  Authority to issue subpoenas, and compliance with any issued 
subpoena, to those subject to FERC jurisdiction to carry out the 
responsibilities of this Act including any audit, investigation, 
examination, analysis, review or evaluation.
  It is essential that Congress and the American people have access to 
detailed and unbiased information on what is happening in our energy 
markets. The General Accounting Office is the right source for such 
information and I urge my colleagues to support this legislation to 
make certain that GAO has the tools it needs to perform its job in 
monitoring our energy markets.
  The text of H.R. 2331 is below:

                               H.R. 2331

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Energy Market Monitoring 
     Act''.

     SEC. 2. FINDINGS.

       The Congress makes the following findings:
       (1) When Congress created the Federal Energy Regulatory 
     Commission in 1977 under the Department of Energy 
     Organization Act, it did not explicitly address the 
     Comptroller General's authority to request and subpoena 
     information from facilities or businesses engaged in energy 
     matters related to the Federal Energy Regulatory Commission's 
     activities. Clarification of the scope of the Comptroller 
     General's access to such information would facilitate the 
     Comptroller General's monitoring of the Nation's energy 
     programs.
       (2) For markets to function properly to provide consumers 
     with goods at a competitive price, and to protect consumers 
     from unjust prices or price manipulation, the markets must be 
     transparent in their transactions. Although the Federal 
     Energy Regulatory Commission is responsible for market 
     monitoring, it is unclear whether the Federal Energy 
     Regulatory Commission has in its possession or has requested 
     from market participants comprehensive market data.
       (3) To ensure transparency of energy markets, and to help 
     protect both consumers and suppliers, the General Accounting 
     Office, as the investigative arm of Congress, must have full 
     authority to examine all markets and market participants' 
     activities.

     SEC. 3. FUNCTIONS OF COMPTROLLER GENERAL.

       (a) Amendment.--Title IV of the Department of Energy 
     Organization Act (42 U.S.C. 7171-7177) is amended by adding 
     at the end the following new section:


                   ``FUNCTIONS OF COMPTROLLER GENERAL

       ``Sec. 408. (a) Scope of Activities.--The Comptroller 
     General shall monitor and evaluate the functions and 
     activities of the Federal Energy Regulatory Commission.
       ``(b) Access to Information.--Any person owning or 
     operating facilities or business premises subject to the 
     jurisdiction of the Federal Energy Regulatory Commission 
     shall provide the Comptroller General with access, including 
     the right to make copies, of any books, documents, papers, 
     statistics, data, records, and information where such 
     material relates to the jurisdiction of the Federal Energy 
     Regulatory Commission, including materials related to energy 
     prices, costs, demand, supply, industry and market structure, 
     auction processes, and environmental impacts.
       ``(c) Subpoenas.--To assist in carrying out the Comptroller 
     General's responsibilities under this section, including any 
     audit, investigation, examination, analysis, review, or 
     evaluation, the Comptroller General may issue subpoenas to 
     any person described in subsection (b) requiring the 
     production of any books, documents, papers, statistics, data, 
     records, and information.
       ``(d) Securing Compliance With Subpoena.--Upon petition by 
     the Comptroller General or the Attorney General (upon request 
     of the Comptroller General), any United States district court 
     within the jurisdiction of which an inquiry under this 
     section is carried out may, in the case of refusal to obey a 
     subpoena of the Comptroller General issued under this 
     section, issue an order requiring compliance therewith, and 
     any failure to obey the order of the court may be treated by 
     the court as a contempt thereof.''.
       (b) Table of Contents Amendment.--The table of contents of 
     title IV of the Department of Energy Organization Act is 
     amended by adding after the item relating to section 407 the 
     following new item:

     ``SEC. 408. FUNCTIONS OF COMPTROLLER GENERAL.''.

     

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