the film forum library tutorial contact

Locke Blasts Energy Firms by Rebecca Cook, Associated Press Seattle Times, December 22, 2000

OLYMPIA - Gov. Gary Locke yesterday condemned out-of-state electricity companies that he says are unfairly profiteering off Washington's energy customers.

"Once again, we're waking up to obscene, manipulative and extortionist electricity prices in Washington, charged by out-of-state power generators," said Locke, who attended an energy summit in Denver on Wednesday with Energy Secretary Bill Richardson and four other Western governors.

Locke is convinced that out-of-state companies, particularly in the Southwest and California, are manipulating prices.

Electricity that normally costs $30 per megawatt hour is now selling for $500 to $1,200 per megawatt hour, Locke said. Meanwhile, some electricity-generating plants in California are lying dormant for unexplained reasons.

"It is pretty obvious there is price manipulation going on," Locke said. He said high energy costs are resulting in a "massive transfer of wealth, not only out of Washington but out of the West," and threatening Washington's prosperity.

The governors asked the Federal Energy Regulatory Commission to investigate the cause of California's skyrocketing electricity prices, who benefits from the prices and whether any generating capacity has been withheld. FERC will also prepare a report on the potential consequences of a regional price cap, and that report should be ready within 10 days, Locke said.

Locke, along with Richardson, California Gov. Gray Davis and Oregon Gov. John Kitzhaber, believes temporary, regional-price caps are the best solution.

Davis has suggested a temporary but firm limit of $100 per megawatt hour.

"We need immediate action now to stop the bleeding," Locke said.

Davis, Locke and Kitzhaber are all Democrats. The three Republican governors at Wednesday's conference - Utah Gov. Mike Leavitt, Wyoming Gov. Jim Geringer, and Colorado Gov. Bill Owens - are not convinced price caps are the answer.

The reasons for the split are more geographical than political, said Dave Warren, director of the Energy Division in the Washington State's Department of Community, Trade and Economic Development. The coastal states, Washington and Oregon, do more power-trading and sharing with California than the inland states and are thus more affected by California's problems.

Usually, Washington gets 15 percent to 25 percent of its electricity in January and February from California power generators. This year, California has no energy to spare.

"Without that power, we have a major crisis confronting us," Locke said.

Without price caps, Locke said Washington will have to cut back its electricity usage.

Big customers might need to shut down, at least during peak hours, and the state might impose voluntary or mandatory electricity rationing.

Locke urged Washington residents to conserve energy during peak hours - don't run the clothes dryer, turn off lights you're not using, and limit hot-water use. Peak hours are 6-9 a.m. and 5-9 p.m.

Locke said his inaugural ball, which starts at 7 p.m. Jan. 10, will have to follow the same rules. Organizers had hoped to illuminate the Capitol with three miles of strung decorative light. Locke said that would be unlikely.