Link
to Letter From Joseph Kelliher
Wyden Will Lift “Hold” on FERC
Nominee
Letter eases Senator’s concern
about Joseph Kelliher’s understanding
of Western energy issues
September 30, 2003
Washington, DC – U.S. Senator Ron Wyden
(D-Ore.) today announced that he will remove his “hold”
on the nomination of Joseph Kelliher to become a commissioner
with the Federal Energy Regulatory Commission (FERC). Wyden
had formally objected to the nomination in March, following
a confirmation hearing in which Kelliher failed to demonstrate
an understanding of the impact of manipulation of West Coast
energy markets on Northwest ratepayers or the problems the Commission's
standard market design proposal could create for the Northwest
electric power grid. Today, Wyden received a letter from Kelliher
addressing those issues and evidencing a fuller understanding
of their impact on Northwest ratepayers; as a result, the Senator
will remove his hold on the Kelliher nomination, effective immediately.
“This communication from Mr. Kelliher reveals
that he’s done his homework about energy issues critical
to the West in general and the Northwest in particular,”
said Wyden. “From standard market design to regional transmission
organizations to the effects of market manipulation, I am confident
that Mr. Kelliher has reached a better understanding of the
particular challenges Northwest ratepayers face.”
At Kelliher’s nomination hearing, Wyden
expressed concern over the FERC proposal to create a one-size-fits-all
standard market design for transmission systems that would be
ill-suited to the Northwest’s transmission system and
could create new opportunities for manipulation of Northwest
energy markets In his letter today, Kelliher assured Wyden that
he believes in regional flexibility for energy markets, rather
than the “imposition of uniform national market rules.”
Wyden also questioned Kelliher over the manipulation
of West Coast spot markets by Enron, which has had a devastating
impact on Northwest energy consumers. As a result of that manipulation,
the Bonneville Power Administration (BPA) and many other Northwest
utilities were induced to sign long-term electricity contracts
in order to protect themselves from the volatility of the spot
markets. In his letter, Kelliher advocated the express prohibition
of the kind of market manipulation that sent Western energy
prices sky-high during the energy crisis of 2001. He also advocated
reform in cases where Pacific Northwest energy contracts signed
during that crisis are found to be discriminatory, fraudulent,
or to impose an “excessive burden” on consumers.
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