October 2, 2002—Eighteen governors recently urged Congress to delay the federal governments adoption of proposed standard energy market rules until Congress and the states evaluate the impact on energy costs and services.
The Federal Energy Regulatory Commission (FERC) proposal calls for the creation of “a seamless, national market for wholesale electricity” and seeks to finalize these rules by mid-2003. The standard energy market rules were proposed by FERC seven weeks ago.
Utility regulators, public utilities and other public officials in more that 25 states have argued that the proposed rules create problems that would result in higher energy prices for consumers and a reduction of the states authority to oversee retail energy services.
In their letter to U.S. House and Senate energy committee chairs, the governors called FERCs proposal “an exceptionally far reaching proposal which represents a significant shift in this nations policy.” They also said that the proposal “is moving too rapidly and has not been adequately evaluated.” They asked Congress to keep FERC from adopting rules until problems and alternate solutions have been identified and discussed.
The letter was signed by governors from Alabama, Arizona, Arkansas, California, Idaho, Kentucky, Louisiana, Mississippi, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.
