08.02.02

Cantwell Intervenes on Behalf of Snohomish PUD Consumers at FERC Senator Calls on FERC to Void Long-Term Contracts

WASHINGTON, DC - U.S. Senator Maria Cantwell (D-WA) today requested that the Federal Energy Regulatory Commission (FERC) take action to remedy the unjust and unreasonable prices Northwest consumers continue to pay as a result of the western energy crisis. Cantwell filed as an official party in FERC's ongoing proceeding to consider Snohomish County Public Utility District's complaint against American Electric Power Service Corporation (AEP).

As a result of Snohomish's AEP contract and other power supply deals inked during the energy crisis of 2000-2001, the PUD has been forced to raise rates by nearly 60 percent for its retail customers. The rate increases have been even more severe for the PUD's commercial and industrial customers.

"The energy crisis may be over, but unless FERC voids this AEP contract and others like it Washington state consumers will be paying artificially inflated prices for years to come," Cantwell said. "We deserve relief from the double-digit rate increases-especially given mounting evidence that power prices were the result of market manipulation."

"This is another example of the exceptional leadership on energy issues by Senator Cantwell to protect Northwest energy consumers," said Snohomish PUD General Manager Ed Hansen.

As the result of a FERC investigation requested by Cantwell at a Senate Energy and Natural Resources Committee hearing on January 29, Enron disclosed memoranda that make clear that it manipulated the energy market, thereby artificially inflating prices throughout the West. FERC continues to investigate other companies' activities in the western market, to assess the pervasiveness of these manipulative and potentially illegal practices.

Washington state ratepayers continue to bear the burden of long-term contracts with AEP, Enron and others. The Bonneville Power Administration alone has $700 million worth of such contracts. Both the Snohomish Public Utility District and PacifiCorp have filed petitions with FERC for relief from long-term contracts signed during the energy crisis.

Cantwell also intervened in a FERC case involving Snohomish's contract with Morgan Stanley Capital Group on May 8, 2002.