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Energy Secretary Orders Emergency Electricity Sales to California

Department of Energy, December 14, 2000

Energy Secretary Bill Richardson today issued an order pursuant to Section 202(c) of the Federal Power Act to require generators and marketers to make power available to keep the lights on in California.

"Events over the last several weeks indicate that electricity supplies in California are tight and that the reliability of the State's electric grid is endangered," said Secretary Richardson. "Ultimately, the problem requires long-term solutions. However, in the short-term, we must act to ensure there will be a sufficient supply of electricity to keep the power flowing to homes and businesses in California."

The emergency order issued today requires that, if the California Independent System Operator (ISO) certifies that there is an inadequate supply of electricity, certain electricity suppliers would be required to make power available to the ISO if they have power available in excess of the amount needed to satisfy service to firm customers. Those suppliers that have provided power to the California Power Exchange and the ISO over the last 30 days that have firm capacity available would be subject to the order.

Under the order, the ISO is required to provide notice to each supplier subject to the order in the amount and type of service requested by 9:00 p.m. EST on the day before the requested service. The ISO must, to the extent feasible, allocate the requests in proportion to the amount of each supplier's available power. The order remains in effect until 3:00 a.m. EST on December 21, 2000 unless modified.

The price for the power provided pursuant to the order will be set by an agreement between the ISO and the supplier. If no agreement is reached, the Federal Energy Regulatory Commission will determine the just and reasonable rate at a later date.

"Emergency orders should be issued sparingly," added Secretary Richardson. "However, I am deeply concerned about the reliability of California's grid. I urge suppliers to act in a responsible manner that will help keep the lights on."

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