[Congressional Record Volume 147, Number 112 (Friday, August 3, 2001)]
[Extensions of Remarks]
[Page E1517]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      DIRECTING FERC TO ORDER REFUNDS FOR ELECTRICITY OVERCHARGES

                                 ______
                                 

                            HON. JANE HARMAN

                             of california

                    in the house of representatives

                        Thursday, August 2, 2001

  Ms. HARMAN. Mr. Speaker, today, I am joined by many of my California 
colleagues in introducing legislation directing FERC to order refunds 
to consumers in the Western States of California, Oregon and Washington 
who have been charged excessive electric energy rates.
  This bill is necessary because we were blocked yesterday from 
offering it as an amendment to H.R. 4, the energy bill.
  As our colleagues know, on several occasions, the Federal Energy 
Regulatory Commission has found electricity rates charged in the 
Western States to be ``unjust and unreasonable.'' Under the Federal 
Power Act, such a finding should result in refunds to consumers but, as 
of today, not a penny has been paid.
  To be sure, there is a difference of view on how much should be 
refunded. While the State claims $8.9 billion, even the Administrative 
Law Judge tasked by FERC several weeks ago to investigate concluded 
that upwards of a billion dollars was owed.
  Now is the time to finally resolve this issue.
  The bill my colleagues and I are sponsoring will require FERC to 
accelerate the process of refunding electricity overcharges.
  It is consistent with the Federal Power Act, although many of us 
would have liked the bill to do more. In particular, if FERC had acted 
promptly when the first evidence of gouging surfaced, FERC could have 
ordered refunds for the period May to October 2000, when electricity 
rates rose dramatically and evidence of overcharges first surfaced. The 
Federal Power Act and concern about ``takings'' prevents FERC and us 
from including that period, although we hope there may be an equitable 
way to do so.
  Many of us also believe that all sellers of electricity engaged in 
price gouging should be ordered to make refunds. Last week, for 
example, FERC exerted jurisdiction over municipal power entities, 
although many legal experts are dubious about the authority to do so. 
Again, without amending the Federal Power Act, we are unable to include 
them, though if we could, there would be an ex post facto concern about 
recouping for a past period.
  Lastly, the process FERC announced last week will still not result in 
refunds for many months. FERC is again engaged in a process of 
investigate-and-delay. Consumers need relief now.
  We strongly believe FERC should act promptly, using one of two 
methodologies in the bill that are fair and likely to result in a quick 
determination. In fact, one of the methodologies was advocated by 
Republicans on the Commerce Committee.
  Consumers in California, Washington and Oregon deserve a prompt 
resolution of this issue. Billions of dollars have been siphoned from 
home and business budgets. Those dollars should be returned and 
returned promptly.
  This bill does that and we urge our colleagues in supporting its 
passage.

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