This order is the beginning, not the end, of the Commission's consideration of California's problem. While I might have hoped that the law permitted the Commission to do more, I am nevertheless persuaded that the Commission has responded firmly and fairly. We have pulled no punches. The Commission's order goes instead to the very heart of why California's wholesale markets produced volatile and unpredictably high prices. We ask for the state's support and cooperation in getting wholesale markets in the West back on the rails.
Much work needs to be done.
Californians are pioneers in this area. And we believe California consumers stand to benefit from open and competitive markets and the capital investment they will attract. I hope we all take the right lessons away from these unfortunate circumstances and continue making wholesale markets work. The single most important remedy that the California market needs, the Commission said, is the elimination of rules that prevent market participants from managing risk. To address these issues and allow better risk management, the Commission proposed that market participants be given the ability to rely more on forward markets.