In doing so, we recognize the utilities' claims of financial difficulties engendered by the steep and unanticipated increases in the cost of procuring wholesale electric energy. The elimination of wholesale electricity price caps by FERC on December 8 as confirmed by its order on December 15 and the resulting five-fold increase in wholesale electricity prices has expanded the crisis to one that involves not only utility solvency but the very liquidity of the system. This decision begins to make good on those commitments. We are not addressing natural gas prices in this decision. We note that the D.C. Circuit Court of Appeals is expected to rule on January 5 on an emergency writ sought by applicant Edison to compel the FERC to fix just and reasonable rates in Western wholesale electric markets.
All statutory references are to the Public Utilities Code, unless otherwise noted.
Currently the applicants purchase their energy for resale from the Power Exchange and the Independent System Operator. The ISO's spot purchases of highest cost spinning reserves adds to the utilities' liquidity problems.