Search to solve power problems

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Search to solve power problems

By Nancy Dunne in Washington Published: January 25 2001 02:56GMT | Last Updated: January 25 2001 03:24GMT

As Californians on Wednesday faced yet another day of power shortages, politicians in Washington were searching for solutions to the crisis as well as strategies to keep it from engulfing other western states.

President George W. Bush is considering an offer likely to offend California's environmental enthusiasts. He said he might relax clear air standards to allow generators to boost their capacity.

Although there might be other ways the federal government could help, his spokesman said, the "arsenal" for deal with the crisis was "small."

California's congressional delegation did not agree. Its members are busily introducing bills, including one, sponsored by Senator Dianne Feinstein, a Democrat, and Congressman Duncan Hunter, a Republican, which would give the energy secretary the authority to impose either an interim Western regional price cap or set reasonable rates of return for power generators.

Spencer Abraham, energy secretary, announced he would be meeting with western state governors on February 1 to discuss ways to contain California's troubles.

Although the House was not yet in session, Bob Filner, a Democrat, on Wednesday was urging the delegation to action. He has proposed giving the Federal Energy Regulatory Commission the power to set wholesale rates retroactively and order refunds from wholesalers who overcharged in the past. Ferc last year ruled that the rates were "unjust and unreasonable" but it offered no enforcement.

Barbara Boxer, a Democrat from California, introduced a windfall profits tax bill, targeting out-of-state power generators, whose profits, she said, had soared by 333 per cent in the January to September 2000 period over the same period in 1999. She is also proposing a series of tax credits for conservation, resurrecting many which lapsed during the mid-1980s. Another proposal would establish a $15bn revolving fund to help states set up their own generating capacity. The Senate energy committee also will meet next week. "We've got to get this under control," said Larry Craig, a Republican committee member.

http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT3ZB5XTDIC&live=true&tagid=ZZZOMSJK30C&subheading=US

-- Martin Thompson (mthom1927@aol.com), January 25, 2001


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