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September 10, 2004

Court Rules Regulators Erred on Refunds

The New York Times reports, "A federal appeals court here ruled on Thursday that federal regulators had erred in rejecting up to $2.8 billion in refunds to California electric customers resulting from what the court called 'artificial manipulation on a massive scale' of the state's energy market. The ruling, by the United States Court of Appeals for the Ninth Circuit, upheld the legality of wholesale electricity sales at market-based rates, a hotly disputed program at the center of the debate over the state's energy crisis in 2000 and 2001. But the court said the Federal Energy Regulatory Commission failed to monitor the energy-selling companies adequately, concluding that the failure to comply with the commission's reporting requirements 'was rampant throughout California's energy crisis.'"

In 2003 Manifesto on the California Electricity Crisis, the group of signatories continues to have a deep concern with the conflicting policy directions being pursued for the industry at both the State and Federal levels of government and the impact the uncertainties associated with these conflicting policies will have, long term, on the economy of California.

Also of interest from the Joint Center:

The Difficult Transition to Competitive Electricity Markets in the U.S. Paul L. Joskow

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