FERC Backs GOP Energy Relief Bill

Federal energy regulators Tuesday endorsed a Republican bill to help California this summer, as Vice President Dick Cheney sought ideas from GOP lawmakers for a possible White House plan.

The three members of the Federal Energy Regulatory Commission told Congress that a modest relief bill proposed by House Republicans was “reasonable” and “welcome” although they added some qualifications on environmental and other issues. One commissioner who supports electricity price caps called on Congress to enact them.

FERC has the power to set wholesale electricity rates, but its commissioners are divided over imposing fixed price caps sought by Gov. Gray Davis. Last week, the commission voted 2 to 1 for a complex plan to limit cost spikes in California during the summer--a plan Davis quickly dismissed as unworkable.

In another development Tuesday, Energy Secretary Spencer Abraham announced the formation of an “energy emergency task force” within his agency to work with federal disaster officials in preparing for possible blackouts in California this summer.

The task force will be headed by retired Air Force Maj. Gen. John McBroom, the Energy Department’s director of emergency operations. Abraham has directed the panel to complete an initial plan by May 15.

The task force will study, among other issues, whether “additional federal or private energy assets provide viable options to offset severe supply deficits,” Abraham said.

Cheney’s meeting with California Republicans, meanwhile, was described as a “brainstorming session” to exchange ideas on how the administration could help ease the state’s energy problems. Rep. Doug Ose (R-Sacramento) said Cheney “took a lot of notes. His people were scribbling wildly as we were talking.”

Lawmakers said Cheney, who is heading a White House task force drafting a national energy policy, showed familiarity with California’s problems: He brought up the subject of the state’s notorious transmission bottleneck--even referring to it by its technical name, Path 15.

But he reaffirmed the Bush administration’s opposition to price caps and downplayed expectations that Washington could make a dramatic difference in California’s summer.

“His main point was that the federal government will try to do everything it can to prevent blackouts this summer--or to minimize them,” said Rep. George P. Radanovich (R-Mariposa). “But he also said there’s not a lot the federal government can do.”

It was unclear whether the White House would itself offer a proposal to help California or whether the administration would support the House GOP bill. One source said White House officials had concerns about the legislation. But a spokesman for Energy and Commerce Chairman W.J. “Billy” Tauzin (R-La.) said the administration would let Congress take the lead.

Democrats--not invited to the Cheney meeting, displeased with last week’s FERC decision and disapproving of the House GOP bill--complained that California’s needs are being ignored.

“The bill will do far more harm than good,” said Rep. Henry Waxman (D-Los Angeles). “It fails to address runaway wholesale electricity prices . . . it interferes with California’s actions to address the electricity crisis . . . [and] creates massive loopholes in the nation’s landmark environmental laws.”

The GOP bill, sponsored by Energy subcommittee Chairman Joe Barton (R-Texas), encompasses a range of ideas, including letting California’s small power producers sell their supplies on the wholesale market; allowing large industrial users the option of shutting down during power emergencies and selling their power back at a profit; and creating special electric power “transmission corridors” across federal lands.

The measure pertaining to California’s small power producers is opposed by Davis, who argues that it would undermine his plan to shore up the state’s failing utilities. But FERC Commissioner William Massey--the lone supporter of price caps--said it “may very well be a reasonable provision given the nature of the emergency.” Proponents said the measure could bring back online a significant amount of generating capacity that is now idle in part because of payment problems.

However, even supporters said the bill is no panacea. “It represents a welcome legislative response to current market conditions in the West,” said FERC Chairman Curt Hebert. “However, the likely extent of the improvement this summer is hard to estimate.”

In other developments:

* Pacific Gas & Electric is putting customers’ pools to work--or rather, out of work--during the hours of highest power use. To conserve electricity this summer, PG&E; said it will pay residential swimming pool owners in Northern and Central California $20 each to operate swimming pool pumps between 8 p.m. and 10 a.m. rather than during the day when electricity supplies are expected to be short. The utility estimates there are 134,000 in-ground swimming pools in its 70,000-square-mile territory. PG&E; expects the program will reduce peak demand by 15 megawatts, or enough to serve more than 11,000 homes. Southern California Edison pays customers $40 to shift pool pumps to off hours and offers rebates of up to $100 when customers buy more efficient pool pumps.

* A report filed by Edison International, the parent company of Southern California Edison, revealed that the corporation spent $340,000 through March 31 on lobbying expenses. Eight energy companies spent more than $1.3 million on lobbying during the three-month period, with much of the companies’ efforts focused on a slew of energy-related bills moving through the Legislature.

*

Times staff writers Nancy Rivera Brooks in Los Angeles and Julie Tamaki in Sacramento contributed to this story.

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PG&E; and Edison Public Hearings

The California Public Utilities Commission will hold statewide public hearings to receive comments on how much various customers will pay under the rate increase recently adopted for Pacific Gas & Electric Co. and Southern California Edison. People who wish to speak must sign up before the hearings. The meetings in Southern California:

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DATE CITY LOCATION Monday, noon Santa Monica Santa Monica Civic Auditorium 1855 Main St. Monday, 7 p.m. Rosemead Rosemead High School 9063 E. Mission Drive May 9, 2 p.m. Fullerton Fullerton College Auditorium 321 E. Chapman Ave. May 9, 7 p.m. San Bernardino Radisson Hotel Sycamore, Aspen, Elm rooms 295 N. E St.

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Edison customers who are unable to attend the hearings may send written comments by May 11 to:

California Public Utilities Commission

Public Advisor’s Office

320 W. 4th St., Suite 500

Los Angeles 90013

or e-mail:

Public.advisor.la@cpuc.ca.gov