Sources Say Federal Regulators Plan to Put a Lid on Soaring Electricity Prices (KFWB) -- There is word out of Washington that the Federal Energy Regulatory Commission is about to make a move giving California relief from soaring energy prices. Sources tell CBS News that FERC will consider, and presumably approve, a form of price control for power sold to the state. They will reportedly review wholesale electricity "price mitigation" next Monday.

California's Democratic Senator Diane Feinstein is behind the political push for price caps. Feinstein says "price mitigation" amounts to similar results, but avoids using the term "price caps." The Bush administration opposes such controls.

The proposal would expand a price mitigation plan that has been in effect since late May solely for power emergencies. It would be instituted around the clock and cover power generated in 12 Western states. The limited version of the plan cut wholesale power prices by almost one-thrid when it kicked in over the last two weeks, indicating the new proposal would provide quick and substantial relief for California consumers.

Gov. Gray Davis' top energy advisor urged the federal government to step in and do something about soaring wholesale power prices on Tuesday. S. David Freeman said that federal regulators must cap wholesale electricity prices to keep California from "being bled to death'' during anticipated power shortages this summer. State officials planned on telling regulators next week that unless these prices fall, California will fall deeper in debt and could drag the rest of the country into a recession.

Vice President Dick Cheney told Californians in Congress Tuesday not to expect energy price controls from the Bush administration. They claim price caps would worsen the power shortage.

The Democratic-controlled Senate has hearings planned on western electricity prices, including a look into FERC's handling of the power crisis. State officials had hoped mounting political pressure would prompt regulators to part from the president's position on price controls

-- pho (owennos@bigfoot.com), June 12, 2001

Answers

What silliness. When you have a cancerous tumor you cut it out. You don't try to cover it over with a band-aid.

-- JackW (jpayne@webtv.net), June 13, 2001.

It takes TIME to cut out the cancerous tumor, whether Y2K embedded chip problems, or more fundamental infrastructure neglect, or both. And, one of the first steps in the process is to apply anesthesia, which is a kind of "band aid."

-- Robert Riggs (rxr999@yahoo.com), June 13, 2001.