California deserves only $1 billion, judge says

An administrative law judge this afternoon said the state of California should get no more than $1 billion in mandated refunds from power products -- not the nearly $9 billion the state wants.

The recommendation by Curtis Wagner, the chief administrative law judge for the Federal Energy Regulatory Commission [FERC] now goes to the five-member FERC board for action. Judge Wagner issued his opinion after 15 days of closed door talks between California and other western states and power producers failed to see either side budge in its position. The total refund sought by the states is about $15 billion.

While Judge Wagner said about $1 billion needed to be repaid to California, he noted that the power producers were actually owed more than that. If his decision stands, it would mean no refund for California. It was unclear how it would affect other states involved.

"Not surprisingly, the energy pirates that bilked ratepayers out of billions of dollars stonewalled and refused to negotiate in good faith with our team in Washington, D.C." says California Gov. Gray Davis in a statement.

"Now this matter goes to the FERC Commissioners for decision," the governor says. "While in the past the FERC has shown little, if any, interest in consumers, they now have the opportunity to redeem themselves by returning the $8.9 billion California has demonstrated it is owed."

http://sacramento.bcentral.com/sacramento/stories/2001/07/09/daily8.html

-- Martin Thompson (mthom1927@aol.com), July 09, 2001

Answers

Great PR, calling California's out-of-state energy suppliers, "energy pirates." This should lead to good relations for the future. Good old Governor Davis. Will he ever learn? A finger in the eye always gets rewarded--in kind. I wonder what form it will take.

-- JackW (jpayne@webtv.net), July 10, 2001.

If Gray Davis were a Republician, the level of attack against him would be deafening by now. What do we hear from the Democrats? virtual silence. I am impressed that the Administrative Law Judge had the guts to in effect say that the governor is wrong.

Can a Governor be impeached for incompetence? Probably not. We just wait until the next election. The Republicians are rolling on the floor laughing at his incompetence. They probably want him to stay in office except that it makes it expensive for all of the residents and businesses in the State.

-- Tom Paine (Tom@notstupid.gom), July 10, 2001.

Don't forget, The California Electricity Deregulation Program was started under the administration and with the blessing of Governor Pete Wilson, Republican. Davis inherited the mess just as it kicked into high gear.

-- PHO (owennos@bigfoot.com), July 10, 2001.