GAO REPORT CONFIRMS FERC FAILED TO PROTECT CONSUMERS
DURING WESTERN ELECTRICITY CRISIS

WASHINGTON, DC -- A new report by the General Accounting Office (GAO) says the Federal Energy Regulatory Commission (FERC) failed to develop ways to protect consumers during the California energy crisis and is still unable to assure fair and reasonable electricity prices.

Sen. Joe Lieberman, D-Ct. requested the report in response to last year's Western crisis, which led to rolling power blackouts and soaring energy prices.

Adam Goldberg, policy analyst for Consumers Union, made the following statement today in response to the report:

"This report confirms what we have suspected for a long time. Federal energy regulators failed to do their jobs during the Western electricity crisis. They didn't do enough to protect consumers when it happened, and they are utterly unprepared to deal with the next crisis if it occurs.

"It's clear from this report that FERC needs to maintain the price caps on Western power markets, which are scheduled to expire in September. Things are stable right now. But if the caps were eliminated, it would completely overwhelm the ability of regulators to prevent another round of price gouging.

"This report should send a strong message to Congress that now is the time to take a hard look at whether FERC has the authority or the resources to do its job. And this is certainly not the time to move forward with the electricity title in the pending energy bill, because that title doesn't take into account the shortcomings of the system detailed in this report."

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Consumers Union, publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumer. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers.

View Files Sorted By Office: Consumers Union OPI, New York - Washington DC Office
West Coast Regional Office - Southwest Regional Office - Consumer Policy Institute

  
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