NFIB

Energy Prices Limited in California
04/26/2001

Federal regulators are ordering limited price caps during California electricity emergencies to help relieve homes and business from the severe price spikes anticipated this summer, the AP reports.

The Federal Energy Regulatory Commission voted 2-1 to regulate prices whenever California's electricity reserves fall below 7 percent, triggering a Stage 1 power alert.

The commission, operating with two of its five seats vacant awaiting Senate approve for two of President Bush's nominees, has come under intense pressure to do something about soaring wholesale power prices throughout the West.

California is expected to be short at least 3,000 megawatts of power this summer, even if temperatures are normal. A megawatt is enough electricity to serve nearly 1 million homes.