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Federal agency and California square off over ISO.(in lawsuit filed, the FERC said board of California Independent System Operator is overly influenced by the state)

Energy User News

| October 01, 2002 | COPYRIGHT 2002 BNP Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

WASHINGTON, DC -- In a lawsuit filed Aug. 16 in U.S. district court here, the Federal Energy Regulatory Commission (FERC) said the board of the California Independent System Operator (CA-ISO) is overly influenced by the state, which through the Department of Water Resources is the largest purchaser of electricity in California.

FERC in a July 17 ruling had said that CA-ISO was insufficiently independent and in violation of FERC orders. The commission ordered CA-ISO to restructure by January 1, 2003, and to begin the process by August 15.

CA-ISO, however, refused to comply with the order to start the process, with the backing of California Gov. Gray Davis (D) and Attorney General Bill Lockyer (D), who insisted that the FERC order was a violation of state law.

Davis called the order an attempted "takeover of the state's electricity grid" and referred to a so-called "stakeholder" board akin to "the foxes guarding the hen house."

The animosity between Davis and FERC is not new. Davis has long complained that FERC stood by during the 2000-200 1 Western energy crisis and did nothing to help ...

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