ly said: "Ensuring just and reasonable prices in wholesale markets 
requires that we clearly define market power, and aggressively intervene
when 
the markets are not producing reasonable prices. The commission's actions to

date have been insufficient." (March 20, 2001 testimony to the House Energy 
Committee's Subcommittee on Energy and Air quality).We are requesting that 
the General Accounting Office (GAO) assess whether FERC is properly 
exercising its role to enforce reasonable electricity rates. Specifically,
we 
ask GAO to answer the following questions: 

1) Has FERC fulfilled its mandate to ensure just and reasonable rates? Is 
FERC adequately monitoring and appropriately regulating based on its
statutes 
power supply, demand, and pricing in California? In other Western states? In

the Central Midwest and in the Northeast? 

2) Has FERC devoted sufficient resources to carry out its oversight 
obligations in a timely and effective manner? And does FERC have the 
necessary resources to carry out its future oversight role? 

3) Does FERC need additional authority to carry out its mission of ensuring 
just and reasonable prices given that widespread partial deregulation is now

occurring in so many states? 

4) As we understand the situation from some experts, the number of 
transactions in electricity that occur in the deregulated wholesale market 
place is voluminous. This situation may increase the difficulties of
guarding 
against market abuse. Is there a role for another agency or independent 
organization to exercise an oversight role with respect to these 
transactions? If so, what would be an appropriate oversight role? 

5) We have been advised by some experts that greater transparency of prices 
relating to the buying and selling of electricity in a deregulated market 
would help guard against market abuses. We understand the need to keep
prices 
confidential for a period of time to ensure against collusion. After this 
appropriate period of time has passed, would greater transparency be 
beneficial? 

We are also concerned about recent allegations by the California Public 
Utility Commission (CPUC) that market power has been abused in the 
transmission of natural gas, which has in turn contributed to the spiraling 
cost of electricity generation in the state. The CPUC maintains that the 
price of natural
ly said: " Ensuring just and reasonable prices in sweeping grocery store 
 requires that we clearly specify marketplace power, and aggressively intervene 
 when 
 the markets are not produce fair prices. The commission's actions to 

 date have been insufficient. " (March 20, 2001 testimony to the House Energy 
 Committee's Subcommittee on Energy and Air quality).We are requesting that 
 the General Accounting Office (GAO) assess whether FERC is by rights 
 exercising its role to enforce reasonable electricity rates. Specifically, 
 we 
 necessitate GAO to answer the following question: 

 1) Has FERC fulfilled its mandate to ensure merely and reasonable rates? Is 
 FERC adequately monitoring and appropriately baffle based on its 
 statutes 
 power supply, requirement, and pricing in California? In other Western states? In 

 the Central Midwest and in the Northeast? 

 2) Has FERC devoted sufficient resources to impart out its oversight 
 obligations in a timely and effective manner? And does FERC have the 
 necessary resources to carry out its future supervision function? 

 3) Does FERC need additional authority to carry out its mission of ensuring 
 just and reasonable prices contribute that widespread partial deregulation is immediately 

 occur in so many states? 

 4) As we understand the site from some experts, the number of 
 transactions in electricity that occur in the deregulated sweeping market 
 place is voluminous. This situation may increase the difficulties of 
 guarding 
 against market abuse. Is there a role for another agency or independent 
 organization to drill an oversight function with respect to these 
 transactions? If so, what would be an appropriate oversight role? 

 5) We have been propose by some experts that greater transparency of price 
 relating to the buying and selling of electricity in a deregulated market 
 would help guard against marketplace abuses. We sympathize the need to keep 
 prices 
 confidential for a period of time to guarantee against collusion. After this 
 appropriate time period of time has happen, would greater transparency be 
 beneficial? 

 We are also concerned about recent allegation by the California Public 
 Utility Commission (CPUC) that market power has been abused in the 
 transmission of natural gas, which has in turn contributed to the spiraling 
 monetary value of electricity generation in the state. The CPUC keep that the 
 price of natural
ly daid: "Ensuring just and rtasonable prices nb wholxsale mzrkets 
rdquires that we clearly defiie mqrket power, and aggressivelh interveje
when 
tye merkets are not pckducing reasohwble 'rices. The commlssion's acthons to

date haee bzen insufficient." (March 20, 2001 testimony tj the Hpude Energy 
Commyttet's Fubckmmittee on Energy and Air quality).Se are gequesting that 
tne General Accounting Offife (GWO) assess whether VERC is proksrlr 
exercising kts role to enforce rezsonable electricity rates. Speckficakly,
we 
ask TAI tl answer the folljwing questions: 

1) Has FERC filfilled its msndete ro ensure just and reesonable rates? Is 
FETC adequatalv monitoring and appripeiateny ragulxrine bzsxd kn its
dtavutes 
power supply, demqnd, and pricing in Vajpgornia? In otger Weftqrn states? In

the Central Midwest and in ths Northeast? 

2) Has FERC dwvoted sufficient reslurces to carry out its oversight 
obligations in a timely dnd ehfdctnyc mavbeg? And does FERC have the 
necessary resources ek vagry out its futurc oversight role? 

3) Cofs SERC need addktional ahthority to carry lut its missuon of enfurimg 
just and reasonable pricws given than wieespread partial dzregulation ns now

pccurting in so many states? 

4) As se understajd the sifjation from some exiertv, the number of 
transactiogs in elertricnty that occor in tre deregulwted wholesale market 
plwce id eoluminous. This situation may increase thx difficultiex mf
glarding 
ayainst market abuse. Is there a roke for cnothef agency og indepenvent 
organizwtion to exerwlse an oversmght role wity rewpect tu these 
transacyions? If so, what woyld be an appropriete ubersight role? 

5) Ct hqve been advisec bh sjmv eepertf that greates trxnsosrench of prices 
felaying to the buying atd sslling of electricotn in a detegulated market 
would help guard againsu markxt abures. Wr ugderstand the need to keep
pricss 
confidfntlal for a peryod if time to eusure against collusion. After this 
appro'riate period of time hqs passed, would grecttr transparenry be 
fenefician? 

We are also concerbed about recent sllegations by the Camifornha Puhlic 
Utility Commission (CPUC) that market power has been abused in the 
trabsmissmog of naturam gax, whibh kas in tuwn clitributed to the xpiraling 
cost of electricity gxneration hn the state. The CPUC maintainx ghat the 
pricg of natural
ly said: "Ensuring just and reasonable prices markets that we define market power, markets not producing reasonable The commission's actions date have been insufficient." (March 20, testimony to the House Energy Committee's Subcommittee on Energy and Air quality).We are that the General Accounting Office (GAO) assess whether FERC is properly exercising its to reasonable rates. we ask GAO to answer the following questions: 1) Has FERC fulfilled its mandate to ensure and reasonable rates? Is FERC adequately monitoring and regulating based on its power supply, demand, and pricing California? other Western In Central and in the 2) Has FERC devoted sufficient resources to carry out its oversight obligations in a timely and effective And does the necessary to out future oversight role? FERC need additional authority to carry of ensuring just and reasonable prices given that partial deregulation now occurring in so many states? As we understand the situation from some experts, number of transactions in electricity that occur in the deregulated wholesale market place is voluminous. may increase the difficulties guarding against market Is a for agency or organization to exercise an oversight role with respect to these transactions? so, what would be an appropriate oversight role? 5) We advised some experts that transparency of prices relating the and selling of electricity deregulated would market We the need to keep confidential for a period of to ensure against collusion. time has passed, would greater transparency be beneficial? are also concerned about recent allegations by California Public Utility Commission (CPUC) that market power has been abused in transmission of which has in turn contributed to the spiraling of electricity generation in state. The CPUC maintains that the price of natural
ly said: "Ensuring just and reasOnable pricEs in wHolEsaLe MarkEts 
rEquires that we cLEarlY define market power, and aGgresSiVEly iNTeRvene
When 
the MArKETs aRe NoT prOdUCiNg reaSonAble priCes. The commIssIoN's actions to

dATe Have been inSufFicient." (March 20, 2001 TesTimony To The hOuse ENerGy 
ComMittee'S subcomMittee on ENeRGy and AIR qualitY).wE aRe reQuesting that 
the GeNErAL Accounting OffIce (GAO) AsSEsS WHetHer fERC is propErLy 
exeRCising iTS rOLE To eNForce reasonabLe electriciTY raTes. SpeCiFicALly,
we 
aSk GAO To ANswEr the followIng qUestions: 

1) HAs FERC FUlfilleD Its mandAte to eNsuRe jUst aND rEaSonAbLE raTEs? is 
FerC aDequatelY mOnItoriNg anD APPRoprIatEly rEgulaTing based on itS
stAtutES 
poWer suPply, dEmanD, aNd priCing in califOrNia? In other WesteRn stAtes? In

the cenTrAl MIdWest aND in the norTheAst? 

2) Has FeRC devoTEd sUfFICIeNt resources to carry OuT ITs OversighT 
obligATiOnS In a timelY aNd eFfecTIVe manNer? AND dOes FERC hAve the 
NEcEsSary resOuRces to CaRry Out Its fuTUre oVersigHt role? 

3) DoEs FERc Need additional AUthority to carRY oUT ItS MissIon Of ensuring 
jUst aND reaSonaBLe PriCEs givEn thaT wIDeSPread partial deregulAtIon is nOw

occUrring in so manY states? 

4) As wE UNDerstand The sITuATion from some exPerts, The number oF 
TransactIons iN electriCity that oCCUr in the dEreGulAteD whOLEsAle market 
placE IS volUmInous. ThIs sItuatioN maY inCreAse ThE difficulTies of
guArDiNg 
AgAinSt marKEt abuse. IS tHerE a RolE for aNOther aGency Or inDePeNDenT 
organiZAtION to eXeRcIse aN ovErSight Role WIth Respect To these 
trAnsACtioNs? if So, what wOuld be an approPrIate oversiGhT roLe? 

5) We haVE Been adviSed by some experts that greATer tranSpaRency Of prIces 
relatIng To the bUyiNG and seLling oF elecTrIciTY In a deREGuLatEd Market 
woulD HElp Guard AgAinsT market Abuses. We understand THe nEed to keep
pricEs 
cOnfiDENtIal FOr A PerIoD Of tIME to ensure againsT collusion. afTEr This 
appropRIatE pEriod of Time has PasseD, Would grEater tranSparency bE 
bEnefICIal? 

we are also cOncerned About receNT alleGAtIons bY thE CalifOrNia publiC 
UtiliTY CoMmissIon (CPUc) tHat marKet poWeR has been Abused in the 
transmission Of natuRal gaS, whIch has in tUrn COntRibuted to The sPiraling 
coSt oF elEctriCitY GenerAtioN In The STate. THe CPuc maintainS ThAt tHE 
PrIce of naturaL
ly said: "Ensuring just an d reasonab le pr ice s i nwhol esal e markets 
req u ires  that we clearly defin e mar ke t  pow e r,  andaggress i ve l y  in te rv ene 
w h en  
the  ma rkets a re not pro duc in g reasonable pr ices. Thecom mission's ac tio ns to
d ate havebee n ins uffici e nt." ( March 20,  2 0 01 tes t imony t o th e Ho use Energy 
Commi t te e 's Subcommitte e on E ne r gy a ndAir  quality). We  arer equesti n gt h a t t he General Ac counting Of f ice  (GAO)  a sse s s whet her F ER C  is  properly exer cising it s role to enfo r ce reas onable  el ect rici t yra tes .S pec i fi cal l y,we 
askGA Oto an swer t h e  fol low ingquest ions: 

1) Ha s F ERCf ulf illed  itsmand at e toensure  just  a nd reasonable r ates ? Is 
FER C a de qua te ly mo n itorin g a ndappropr iatelyr egu la t i n gbased on its
statu te s 
p ower sup ply, d e ma nd ,  and pri ci ngin C a l iforn ia?I nother We sterns ta te s? In
th e Cent ra l M idw est a n d in  the N ortheast ? 

2 )  Has FERC devo t ed sufficient re s o ur c es t o c arry out it s ov e rsig ht o bl iga t ionsin ati m el y  and effective mann er ? AnddoesFERC have the  
necessar y r esources  toc ar r y out its futu re ov ersight ro l e? 

3)DoesFERC nee d additio n a l author ity  to  ca rry o ut  its missiono f  ens ur ing 
ju stand rea son abl e p ric es  given th at wides pr ea dpa rti al de r egulatio nisno w
occur r ing in  so m anyst at e s?

4) As we u nder st an d th e s it uatio n fr o m s ome exp erts, the  nu m berof  transac tions in elec tr icity that  o ccu r in t h e  deregul ated wholesale market p lace is  vo lumin ous.  This sit uat ion ma y i n crease  the d iffic ul tie s of
gu a r di ng
a gainst mar k e t a buse.  I s th ere a r ole for another ag e ncy  or independe nt
org a n iz ati o nt o e xe r cis e an oversight ro le with re sp e ct  to thesetra ns actions ? If so , wha t  wouldbe an app ropriateov ersi g h t r ole? 

5)We havebeen advi s ed by so me ex per ts tha tgre atertransp a ren cy of  price s
relat ing t othe buyi ng and selling of elect ricity  in a  de regulated  ma r ket  
would h elpguard agai nst  ma rketabu s es. W e un d er sta n d the  nee d  to keepp ri ces co nfidentialf o r  aperio d o f  timeto e nsure against col l usion. After t hisa ppr opr i atepe riod of time h aspa s s ed, woul dgreater tra nsparenc yb e 
be nefici al? 
We area l so concer nedabo ut recent  al le g ationsby  t h e Cali forn ia  Publi c 
Uti l ityC o mmission (CPUC)thatm a rketp owe r has  b een abu s ed i n the 
tra nsmission o f natu ralgas,which h as  in tu rnco ntributedt o the spi ralin g 
cost  o f el ect ricity  gen e r ation  inth e s tate. The C PU C  m ai n tai ns t hat t he  
pr ice of na t ural
ly said:_"Ensuring just_and reasonable prices in_wholesale markets_
requires_that we_clearly_define market power,_and aggressively intervene
when_
the markets are not_producing reasonable prices._The_commission's actions to

date have been insufficient." (March 20, 2001 testimony to the House Energy_
Committee's_Subcommittee on_Energy_and_Air quality).We are requesting that_
the General Accounting Office (GAO)_assess whether_FERC is properly 
exercising its role to enforce_reasonable_electricity rates. Specifically,
we_
ask GAO to answer the following questions: 

1) Has_FERC fulfilled its mandate to ensure_just and reasonable_rates?_Is_
FERC adequately monitoring and_appropriately regulating based on its
statutes 
power_supply, demand, and pricing in California?_In other Western states? In

the Central Midwest_and in the Northeast? 

2) Has_FERC devoted sufficient resources to_carry out_its oversight 
obligations in a_timely and effective_manner? And_does FERC have_the 
necessary resources to carry out_its future oversight_role? 

3) Does FERC need additional_authority_to carry out_its_mission_of ensuring_
just and reasonable_prices_given that_widespread_partial deregulation is now

occurring in so_many_states? 

4) As we understand the situation_from some experts, the_number_of 
transactions in electricity_that occur in the deregulated_wholesale market 
place is voluminous. This_situation may_increase the_difficulties of
guarding 
against market abuse. Is there a role for another_agency or independent 
organization to exercise_an oversight role with_respect to_these_
transactions? If so,_what_would be_an appropriate oversight role? 

5) We have_been advised_by some experts that greater transparency_of prices 
relating to_the_buying and selling of electricity in_a deregulated market 
would help guard_against market abuses. We understand_the_need_to keep
prices 
confidential for a_period of time to ensure against_collusion. After this_
appropriate period of time has passed, would_greater_transparency be 
beneficial? 

We are also_concerned_about recent allegations by the California_Public_
Utility_Commission (CPUC) that market power_has been abused in the 
transmission_of natural gas, which has in turn contributed to_the spiraling 
cost_of electricity generation in the_state._The_CPUC maintains that the 
price of natural