Save On Electricity

OCLC Number: (OCoLC)47280309 Subject: Electric utilities -- Rates -- California. Excerpt: ...7, the Feinstein/Boxer bill, requires FERC to impose cost-of-service price controls on wholesale electricity sold in the West. Cost-of-service price control is the price set on a generator-by-generator basis, calculated by adding the actual cost of generating power plus a rate of return on invested capital. S. 80, the Boxer/Feinstein bill, requires FERC to impose a price cap on wholesale electricity. Now, the wholesale price cap is a single maximum price which may not be exceeded regardless of the cost of production. I think we have to ask ourselves if that, in fact, stimulates generating capacity coming into California. I think we know what the answer is. S. 26, the Feinstein/Boxer bill, requires the Secretary of Energy to impose either a price cap or a cost-of-service price control on wholesale electricity. Now, that basically takes the authority from an independent regulatory agency, FERC, which we assume is an objective agency, and gives it to a political appointee. No offense, Mr. Secretary, but the Secretary of Energy is given that authority. I think that is contrary to the object of initially establishing FERC because it sets it in a political arena. In addition, amendment no. 12 by Senator Smith, as I understand it, would require the States to allow the pass- through of costs to consumers if they are to receive wholesale price controls. I think there is some justification for this, certainly, in ensuring that we have some relief by increasing power generating capacity because unless there is the assurance of a pass-through, I doubt very much if it is going to be economically viable to attract those that want to put in facilities. In my opinion, this would address the problem of California denying the utilities the pass-through of their costs, which I understand is about $13 billion to date. I am of the opinion that if y...