IV

106TH CONGRESS

2D SESSION H. CON. RES. 417

Expressing the strong support of Congress that the Federal Energy Regulatory Commission execute its fundamental responsibility to reform the

unjust and unreasonable electric power rates in California immediately.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 4, 2000

Mr. HUNTER (for himself, Mr. BILBRAY, Mr. CUNNINGHAM, Mr. PACKARD,

and Mr. FILNER) submitted the following concurrent resolution; which

was referred to the Committee on Commerce

CONCURRENT RESOLUTION

Expressing the strong support of Congress that the Federal

Energy Regulatory Commission execute its fundamental

responsibility to reform the unjust and unreasonable electric power rates in California immediately.

Whereas the economy of San Diego and Orange Counties is

being drained of $75,000,000 to $100,000,000 each

month as a result of unreasonable electric power costs;

Whereas electricity consumers of San Diego and Orange

Counties are expected to be $500,000,000 poorer by the

end of October 2000 as a result of electricity price spikes;

Whereas electricity prices have increased by 9000 percent in

a matter of hours during periods of peak demand in San

Diego this summer;
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•HCON 417 IH

Whereas the Federal Energy Regulatory Commission has a

fundamental obligation to protect American consumers

from excessive electricity price increases;

Whereas section 206(a) of the Federal Power Act provides

that ‘‘whenever the Federal Energy Regulatory Commission, after a hearing had upon its own motion or upon

complaint, shall find that any rate, charge, or classification, demanded, observed, charged, or collected by any

public utility for any transmission or sale subject to the

jurisdiction of the Commission, or that any rule, regulation, practice, or contract affecting such rate, charge, or

classification is unjust, unreasonable, unduly discriminatory or preferential, the Commission shall determine the

just and reasonable rate, charge, classification, rule, regulation, practice, or contract to be thereafter observed

and in force, and shall fix the same by order’’;

Whereas the Commission’s authority under section 206(a)

was recognized by the courts during Louisiana Public

Service Commission v. FERC, with the U.S. Court of Appeals for the District of Columbia Circuit which stated

that ‘‘as to matters within its jurisdiction, the Commission has the duty-not the option-to reform rates that by

virtue of changed circumstances are no longer just and

reasonable’’; and

Whereas the Commission, through its willingness to hold a

hearing on the justness and reasonableness of the rates,

charges and practices of public utility sellers of wholesale

power into the markets of the California Independent

System Operator and California Power Exchange, has acknowledged that it recognizes its authority to establish

new rates and charges pursuant to the findings of that

hearing: Now, therefore, be it
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•HCON 417 IH

1 Resolved by the House of Representatives (the Senate

2 concurring), That it is the sense of Congress that the Fed3 eral Energy Regulatory Commission has the duty, not the

4 option, to reform the unjust and unreasonable electric

5 power rates in California without further delay.

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