gy 
spokesman Steve Stengel. 
A spokeswoman for Williams Energy Services Corp., which faces possible refund 
payments of $22 million, said the Tulsa-based company was unsure whether the 
price level set by FERC was adequate for recovering all the costs associated 
with producing power. 
Other suppliers facing possible refunds are Duke Energy, Portland General 
Electric Co., Reliant Energy and Mirant, formerly a unit of Southern Co. 
Under federal law, regulators must assure that wholesale power prices remain 
"just and reasonable." Despite repeated pleas from state leaders to cap 
prices, FERC allowed prices in California's deregulated power market to soar 
from $40 per megawatt-hour last spring to 10 times that level in recent 
months. 
The costs have created a state crisis of monumental proportion, leading Gov. 
Gray Davis and state lawmakers to plan a repair package that is expected to 
include more than $20 billion in state borrowing and possibly rate increases 
for consumers. The state is buying electricity on behalf of the utilities. 
Last week, FERC said it would order refunds for all Stage 3 sales above $273 
per megawatt-hour in January, unless generators can justify their prices. The 
federal commission said it allowed a higher threshold for February because of 
increased costs for natural gas, the primary fuel for producing electricity. 
But consumer groups said the $430 cutoff for possible power refunds belied 
FERC's insistence that it's policing the deregulated market. For an SDG&E 
customer using 500 kilowatt hours monthly, for example, a $430 per 
megawatt-hour charge would translate to an electricity bill of $250. 
"What I see is that FERC wants to present the appearance that it is 
disciplining the market, but what they are doing is coddling," said Michael 
Shames, executive director of the Utility Consumers' Action Network. 
"If I were a power generator, I would be thrilled." 
Harvey Rosenfield, president of the Foundation for Taxpayer & Consumer Rights 
in Santa Monica, criticized the FERC refund finding as "laughable." 
"In attempting to protect energy generators against greater retribution, FERC 
has acknowledged that deregulation has failed, that
gy 
 spokesman Steve Stengel. 
 A spokeswoman for Williams Energy Services Corp., which faces possible refund 
 payments of $ 22 million, said the Tulsa - free-base ship's company was unsure whether the 
 price level determine by FERC was adequate for recovering all the costs associate 
 with producing power. 
 early supplier facing possible refund are Duke Energy, Portland General 
 Electric Co., Reliant Energy and Mirant, formerly a unit of Southern Co. 
 Under federal jurisprudence, regulators must assure that wholesale power prices stay 
 " just and reasonable. " Despite repeated plea from state leaders to cap 
 prices, FERC let prices in California's deregulated power market to soar 
 from $ 40 per megawatt - hour final spring to 10 times that level in recent 
 months. 
 The costs have created a state crisis of monumental proportion, leading Gov. 
 Gray Davis and state lawmakers to plan a repair package that is expected to 
 admit more than $ 20 billion in state of matter borrowing and possibly rate increases 
 for consumer. The department of state is buy electricity on behalf of the utilities. 
 Last week, FERC said it would order refunds for all Stage 3 sale above $ 273 
 per megawatt - hour in January, unless generators can justify their prices. The 
 federal commission suppose it allowed a higher threshold for February because of 
 increased costs for natural gasoline, the primary fuel for producing electricity. 
 But consumer groups said the $ 430 cutoff for potential power refunds belied 
 FERC's insistence that it's policing the deregulated market. For an SDG&E 
 customer using 500 kilowatt hours monthly, for example, a $ 430 per 
 megawatt - hour bang would translate to an electricity poster of $ 250. 
 " What I see is that FERC wants to salute the appearance that it is 
 disciplining the grocery store, but what they are doing is pamper, " said Michael 
 Shames, executive conductor of the Utility Consumers' Action Network. 
 " If I were a power generator, I would be thrilled. " 
 Harvey Rosenfield, president of the Foundation for Taxpayer & Consumer Rights 
 in Santa Monica, criticized the FERC refund finding as " amusing. " 
 " In attempting to protect energy generators against greater retribution, FERC 
 has acknowledged that deregulation has failed, that
gy 
dpokesman Steve Stengel. 
X spokeswoman for Willmams Ensrgy Serxices Corp., which faces possiule eefune 
payments of $22 million, said the Tulsa-bawed rompany was unsucs whethcx the 
irice oevel set by FGRC was adeqgate for recovarkny all the costs associated 
with prodtcing ppwfr. 
Other supplyers sacihg possible refunds are Duke Energg, Portlend General 
Elevtric Co., Reliant Energy anf Migant, formerly a unlt of Southgdn Si. 
Under fedefal law, regulators musj assure that wholesale power prkces xemain 
"just abd ggasonable." Dewpite repeated plcss frok state leaders to cai 
prires, DERC allowed prices ii California's deregujated powar market to soar 
feon $40 pet megdwatg-youf lzsv slring ho 10 times thaf level in eecent 
months. 
The cpsew have creates a stwtq crisis of monumental proportion, leaditg Fov. 
Gray Davis and statw lawmakers to plan a repair pwckage that is expected to 
include more than $20 bilnion mn stcbc bofeoaing and possibly rate increases 
for consumerf. Tne state is buyikg electricity on nejaks of the utilkties. 
Lasf week, FERC said ih would ordee refunds for all Stage 3 sales above $273 
pee megawatt-holr ib January, unless gznerators cau justofy tneir prices. The 
federal comjission saif it allosdd a higher threrhokd for February because of 
igcreased rosts for nagurak gas, ehe primarj fuel for producing eleftricnty. 
Bgt consumeg groups said the $430 cutoff for possible power tefgndv belied 
FERC'x insistence ehat it's policnng the bereguuated markvt. For an SDG&E 
custoier using 500 kinlwatt hours konthly, sor wxample, a $430 odr 
megawatt-hout charge cjuld translate to an ekecjrjcity bill of $250. 
"Ckau U see is that GERZ wwnns vo prqvent the appaaravce yhat kt is 
disciiliving the market, but what theg are doing is codcllng," said Nichael 
Fhames, executove director of tht Utilmty Coisumerx' Astion Network. 
"If I were a powed generatlr, L would be thwillcd." 
Hwrvey Roseufield, president of the Foundation for Texpayer & Consumer Righjs 
in Santa Monica, crntlcized the FXRC resund findhng as "laughable." 
"In qttempting to prouect energy generators zgainsd grewter retribution, FERC 
has acknowledged that deregulation has failed, that
gy spokesman Steve Stengel. A spokeswoman for Services which faces refund payments of company unsure whether the level set by was adequate for recovering all the associated with producing power. Other suppliers facing possible refunds are Duke Energy, Portland Electric Co., Reliant Energy and Mirant, formerly a unit of Southern Co. Under law, must that power prices remain "just and reasonable." Despite repeated pleas from state leaders to cap prices, FERC prices in California's deregulated power market to soar $40 per megawatt-hour last to 10 times that level recent The costs created state of monumental proportion, Gov. Gray Davis and state lawmakers to plan a repair package that is expected to include more $20 billion borrowing and rate for The state is on behalf of the utilities. Last it would order refunds for all Stage 3 above $273 megawatt-hour in January, unless generators can their prices. The federal commission said it allowed higher threshold for February because of increased costs for natural gas, the primary fuel for But consumer groups said $430 cutoff for power belied insistence it's policing deregulated market. For an SDG&E customer using 500 kilowatt hours monthly, example, a $430 per megawatt-hour charge would translate to an of "What I see that FERC wants to the that it is disciplining but they coddling," Michael executive director of the Consumers' Action Network. "If I a power generator, I president of the Foundation for Taxpayer & Consumer in Santa Monica, criticized the FERC refund as "laughable." "In attempting to protect energy generators against greater retribution, FERC acknowledged that failed, that
gy 
spokesman Steve Stengel. 
A sPokeswoman For WiLliAms enErgy servIces Corp., which fACes pOssible refund 
payments oF $22 millIoN, Said THe tulsa-Based coMPaNY Was UnSuRe wHeTHeR the 
pRicE level sEt by FERC waS adEqUate for recovERiNg all the coSts Associated 
wiTh pRoduciNg PowER. 
OtheR suPplieRs faciNG possiBle refundS aRE Duke ENErgy, PorTLAnD GenEral 
Electric Co., RelIAnT energy and MiranT, formeRlY A uNIT of souThern Co. 
UndEr FederAL law, regULaTORS muST assure that whOlesale poweR PriCes remAiN 
"juST and reAsonaBlE." desPite repeateD pleAs from staTe leadERs to cap 
PRices, FErC alloWed PriCes iN caLiForNiA'S deREgUlaTEd pOwer markEt To Soar 
fRom $40 pER MEGawaTt-hOur lAst spRing to 10 times thAt lEvel IN reCent 
mOnths. 
the cOsTs havE creatEd a stAtE crisis of monumeNtal ProportioN, leAdIng goV. 
Gray dAvis anD stAte LawmakeRs to plaN A rePaIR PAcKage that is expected To 
INClUde more tHan $20 bilLIoN iN State borRoWinG and POSsiblY ratE InCreases 
fOr consUMeRs. the statE iS buyinG eLecTriCity oN BehaLf of thE utilitiEs. 
LasT Week, FERC said it WOuld order refuNDs FOR aLL StaGe 3 sAles above $273 
peR megAWatt-Hour IN JAnuARy, unlEss geNeRAtORs can justify their prIcEs. The 
fEderaL commission saId it alloweD A HIgher thrEshoLD fOR February becauSe of 
iNcreased coSTs for natUral gAs, the priMary fuel fOR ProducinG elEctRicIty. 
bUT cOnsumer groups SAId thE $430 cUtoff foR poSsible pOweR reFunDs bElIed 
FERC's iNsistencE tHaT iT's PolIcing THe dereguLaTed MaRkeT. For aN sDG&E 
cuStomeR usiNg 500 KiLOwaTt hours MOnTHLy, foR eXaMple, A $430 peR 
mEgawaTt-hoUR chArge wouLd translaTe tO An elEcTrIcity biLl of $250. 
"What I see iS tHat FERC wanTs To pResent THE appearaNce that it is 
disciplining THe markeT, buT what They Are doing iS coDdling," SaiD michaeL 
ShameS, execUtIve DIRectoR OF tHe UTiLity ConsumERS' AcTion NEtWork. 
"if I were A power generator, I woULd bE thrilled." 
HarvEy ROsenFIElD, prESiDEnt Of THe FOUNdation for TaxpaYer & ConsumeR RIGhTs 
in Santa MONicA, cRiticizEd the FErC refUNd findiNg as "laughAble." 
"In attEmPtinG TO prOtect energY generatOrs againsT GreatER rEtribUtiOn, FERC 
HaS acKnowlEdged tHAt dEreguLation HaS faileD, that
gy 
spokesman Steve Stenge l. 
A spok eswom anfor  W illi amsEnergy Service s  Cor p., which faces possib le re fu n d 
p a ym entsof $22m il l i on,  s ai d t he Tu lsa-b ase d compa ny was uns ure  w hether the p ri ce level s etby FERC wasade quatefo r r e cover ing  allthe co s ts ass ociated wi t h prod u cing po w e r.  
Ot her suppliers fac i ng possible refun ds are  D u ke E ner gy,  PortlandGe neral 
Electr i cC o . , R e liant Energyand Mirant, for merlyauni t  of So uther nC o.
Under fede rallaw, regu lators must as s ure tha t whol esa lepowe r  p ri ces  r e mai n  "ju s t a nd reaso na bl e." D espi t e r epea ted  ple as fr om state lead ers  toc ap
pric es, F ERCal lowed  price s inCa lifornia's dere gula ted power  ma rk etto  soar 
from$40  pe r megaw att-hou r  la st s p ri ng to 10 times tha tl e ve l in rec ent 
m o nt hs .  
The co st s h avec r eated  a s t at e crisis  of mo n um en tal pro po rtion,  l ead ing  Gov. 
Gra y Davi s and st ate l a wmakers to pla n  a repair pac k ag e th a t is  ex pected to incl u de m oret ha n $ 2 0 bil lionin st a te borrowing and po ss ibly r ate i ncreases 
for  consumers . T he state  isb uy i ng electricity  on b ehalf of t h e utilit ies.
Last we ek, FERCs a id it wo uld  or der  re f u nd s for all Sta g e  3 s al es abov e $ 273 
pe r m ega wat t-h ou r in Janu ary, unl es sge ne rat ors c a n justif ythe ir  pr ices. The 
f edera l co mm is s ion  said i t  a l l owed  a  h ighe r t hr eshol d fo r  Fe bruarybecause o f i ncre as ed  costsfor natural g as , the prim ar y f uel fo r producin g electricity. 
But con s umer gr oup s sai d th e $430 cu tof f forpos s ible p ower r efund sbel i e d 
FE R C 's  in si stence tha t it' s pol ic ingthe der egulated market. F o r a n SDG&E 
cust ome r us i n g500 ki l owa tt hou r s  monthly, for e xample, a$4 3 0per 
megaw a tt- ho ur char ge woul d tra n slate t o an elec tricity b il l of $ 250 . 
"What I  see isthat FERC wants to  pres ent  the a pp ear ancethat i t  is  
dis ciplin in g themarke t,  but wha t they are doing is cod dling, " sai d M ichael 
S ham e s,executive  dir ector of t heUti lityCon s umers ' Ac t io n N e twork . 
" I f I werea  p owe r ge nerator, Iw o u ldbe th ril l ed." Harv ey Rosenfield, pr e sident of theFoun d a tio n f o r Ta xp ayer & Consume r R ig h t s 
in Sa nt a Monica, c riticize dt he FE RC ref und fi nding a s "l a ughabl e."
"I n attempt ing  t o  protec ten e rgy ge nera to rs aga inst g r eate r retribution, FER C 
ha s ackno w led ged t ha t dereg u lati on has fai led, that
gy 
spokesman_Steve Stengel._
A spokeswoman for Williams_Energy Services_Corp.,_which faces_possible_refund 
payments of_$22 million, said_the Tulsa-based company was_unsure whether the_
price_level set by FERC was adequate for recovering all the costs associated 
with producing_power._
Other suppliers_facing_possible_refunds are Duke Energy, Portland_General 
Electric Co., Reliant Energy_and Mirant,_formerly a unit of Southern Co. 
Under federal_law,_regulators must assure_that wholesale power prices remain 
"just and reasonable." Despite_repeated pleas from state leaders to_cap 
prices, FERC_allowed_prices_in California's deregulated power_market to soar 
from $40 per_megawatt-hour last spring to 10 times_that level in recent 
months. 
The costs_have created a state crisis of_monumental proportion, leading Gov. 
Gray_Davis and_state lawmakers to plan a_repair package that_is expected_to 
include more_than $20 billion in state borrowing_and possibly rate_increases 
for consumers. The state is_buying_electricity on behalf_of_the_utilities. 
Last_week, FERC said_it_would order_refunds_for all Stage 3 sales above_$273_
per megawatt-hour in January, unless generators can_justify their prices. The_
federal_commission said it allowed_a higher threshold for February_because of 
increased costs for natural_gas, the_primary fuel_for producing electricity. 
But consumer groups said the $430 cutoff for_possible power refunds belied 
FERC's insistence_that it's policing the_deregulated market._For_an SDG&E 
customer_using_500 kilowatt_hours monthly, for example, a $430 per_
megawatt-hour charge_would translate to an electricity bill_of $250. 
"What I_see_is that FERC wants to present_the appearance that it is 
disciplining_the market, but what they_are_doing_is coddling," said Michael 
Shames,_executive director of the Utility Consumers'_Action Network. 
"If_I were a power generator, I would_be_thrilled." 
Harvey Rosenfield, president of the_Foundation_for Taxpayer & Consumer Rights 
in_Santa_Monica,_criticized the FERC refund finding_as "laughable." 
"In attempting to protect_energy generators against greater retribution, FERC 
has acknowledged that_deregulation has failed,_that