FERC REPORT FINDS MARKET MANIPULATION BUT AGENCY'S REFUND
PROPOSAL FALLS SHORT OF REPAIRING DAMAGE TO CALIFORNIA

Statement of Consumers Union's Janee Briesemeister on the Federal Energy Regulatory Commission's report on market manipulation in the California electricity market:

"We are not surprised by FERC's findings of fraud, abuse and manipulation in the deregulated California and Western energy markets. In June 2001 Consumers Union petitioned FERC to protect consumers by ending market based rates, but FERC declined to act.

"Everyone expects to hear that Enron was the bad guy, but FERC's findings show gaming and market manipulation ran rampant in California's gas and electricity markets. More than 30 energy companies are implicated in the report. Deregulation and an unwilling watchdog let energy marketers unfairly wring billions of dollars out of California consumers.

"We applaud FERC's continued investigation and many of the recommendations for market reform. However, the agency's refund proposal does not go far enough to undo the damage deregulation has caused in California.

"While FERC is proposing reforms and further investigations, Congress is considering a giant step backward in the proposed repeal of the Public Utility Holding Company Act. PUHCA was adopted in 1935 to protect consumers and investors by preventing complicated corporate structures, affiliate transactions and consolidations that hinder effective regulation. The examples of fraud, abuse and scheming with affiliates that are coming out of the California market offer ample evidence why Congress should maintain and strengthen the protections of PUHCA, rather than repeal it at the behest of the energy industry.

###

Consumers Union, publisher of Consumer Reports, is an independent, nonprofit testing and information organization serving only consumers. CU is a comprehensive source of unbiased advice about products and services, personal finance, health and nutrition, and other consumer concerns. Since 1936, CU's 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

  
the entire directory only this category
[More search options]

[ Health ] [ Finance ] [ Food ] [ Product ] [ Other ]
[ About CU ] [ News ] [ Tips ] [ Resources ]
[ New Files ] [ Home ]


Please contact us at: http://www.consumersunion.org/contact.htm
All information ©1998-2003 Consumers Union