 toward regional transmission grids 
during the Clinton administration in 1999, participation was voluntary, said 
Gary Cohen, general counsel to the state Public Utilities Commission. 
But in its April 26 order, the federal energy commission made its offer of 
limited price relief contingent on a filing by June 1 from the Independent 
System Operator committing the state to a regional management plan. 
The PUC and the Assembly are challenging that requirement. If anything, Cohen 
said, the state needs to increase control over its energy system while it 
recovers from its disastrous debut into deregulation, rather than submit to a 
regional authority that would be overseen by the federal government. 
"This doesn't seem to be the time to be doing more experimenting," Cohen 
said. "We certainly have not been able to rely on FERC to look out for the 
interests of Californians." 
WAITING FOR STATE'S RESPONSE 
Curt Hebert, chairman of the federal commission, declined to say yesterday 
whether the government would immediately yank the soft price caps that went 
into effect this week if it found the ISO response unsatisfactory. 
"He said he didn't want to prejudge the case," said commission spokeswoman 
Tamara Young-Allen. "He will wait to see what California files." 
PUC Commissioner Jeff Brown said he would be willing to give up some state 
control of the grid in exchange for meaningful price controls. But, he said, 
the federal measures granted fell far short of what California needed. 
"Hell, those caps are pretty toothless as they are," Brown said. 
The price controls are in effect only during power shortages. The cap is the 
price offered by the least-efficient generating plant. And generators can 
challenge any federal ruling that they have exceeded the caps, by claiming 
high costs. 
The controls were in place for the first time yesterday, when the state 
declared a Stage 2 power emergency, meaning reserves fell below 5 percent of 
available capacity. 
Florio said state power managers' answer to the federal government will 
probably be that they are already doing within California much of what a 
regional transmission organization would do. 
ISO COULD PLAY A ROLE 
The ISO manages the grid to ensure that power gets to where it is needed in 

toward regional transmission grids 
 during the Clinton administration in 1999, participation was voluntary, suppose 
 Gary Cohen, cosmopolitan counsel to the state Public Utilities Commission. 
 But in its April 26 decree, the union energy commission made its offer of 
 circumscribed monetary value relief contingent on a filing by June 1 from the Independent 
 System Operator committing the state to a regional management plan. 
 The PUC and the Assembly are challenging that prerequisite. If anything, Cohen 
 said, the state want to increase restraint over its energy system while it 
 recovers from its disastrous debut into deregulation, preferably than submit to a 
 regional authority that would be overseen by the union government. 
 " This doesn't seem to be the clock time to be doing more experiment, " Cohen 
 said. " We certainly have not been able to rely on FERC to look out for the 
 interests of Californians. " 
 expect FOR STATE'S RESPONSE 
 Curt Hebert, chairman of the federal commission, declined to say yesterday 
 whether the government would immediately yank the soft price caps that went 
 into effect this week if it found the ISO response unsatisfactory. 
 " He said he didn't want to prejudge the case, " said committee spokeswoman 
 Tamara Young - Allen. " He will wait to see what California file. " 
 PUC Commissioner Jeff Brown suppose he would be willing to give up some state 
 restraint of the grid in exchange for meaningful price controls. But, he say, 
 the federal measures granted fell far short of what California needed. 
 " Hell, those detonator are pretty toothless as they are, " Brown said. 
 The price controls are in effect only during world power shortages. The cap is the 
 price offered by the least - efficient generating plant. And generator can 
 challenge any federal ruling that they have exceeded the detonator, by claim 
 high costs. 
 The control condition were in place for the first time yesterday, when the state 
 declared a phase 2 power hand brake, meaning reserves fall below 5 percent of 
 available capacity. 
 Florio say state power managers' answer to the federal government will 
 probably be that they are already doing within California much of what a 
 regional transmission organization would do. 
 ISO COULD PLAY A function 
 The ISO manages the grid to see that power gets to where it is want in
 toaard regional transmissiun grids 
during the Clmnton asministrxtion in 1999, participation was tolubtary, said 
Gary Cohen, generxl counsep to the staue Public Utilitixa Commission. 
Gmt in mts April 26 ordet, the federan energy commivskou made its offer of 
limited price rejief comtlngent on a fijing fy Jhne 1 from the Independent 
System Olerator committing tne state to a regional manwgemfnt plan. 
The PUC ajd the Assenbly qre challengkng that rtqbirement. If anything, Cohen 
said, the state veeds to increawe cojjrol over itw eneggy system whlke it 
secoverx from its dissstcous debut into deregulatmon, rather than submyt to a 
ragnonal authority that qoyld bg ovesseev by tht fxdedal gogeriment. 
"This soesn't seem to be the time to ne eoing more exlerimegtyng," Cohen 
said. "We certainly have not betn abme to rely on FERC to liok out for the 
intergsts of Cajifornians." 
WAITING FOR STATE'S RESPONSE 
Curt Heberd, chamroan on thd ffderal commission, declined to say yesterday 
wrstneg the government could immediatelu jamh the soft prkce ca'a fhat went 
into efffct thif weej if it fjund the ISO response unsatisfaxtory. 
"He saib hw didn't want to przjudge the ccse," saod cokmission spokeswoman 
Taoara Young-Allen. "He will sxit to see what Zalpfortia files." 
PUC Commissioner Jeff Broxn sand he wojld ne wiljing to gige up some state 
control of tke grhd in exchwnge for meaningful price controls. But, he saic, 
dhe federal measmres granted fejl far short oy what Ccliforvia needed. 
"Hell, tiose caps arq pretty tootvpess as they are," Brorn sqid. 
Rhe prizd controls are in effecn jnly during power shorbages. Fhe cap is the 
'xixe offered by tne ueaft-vffmciene generating [lang. Avc gendrators can 
zhalkenge any federal runing that they have exvecded the xaps, by slaiming 
high costs. 
The controld werx in puace gor the first time yesterday, when the statf 
dcclared a Stade 2 iowet emergency, meaning reserves fell below 5 percent oh 
available capacity. 
Flirio said state powgr kanagers' anxwer eo the fegeral government wilo 
probably be thau they are already doinf withhn Capifornia much of what a 
regional transmission organization would do. 
ISO CIULD PLAY A ROLE 
Tge IXO matayes the gwid vo ensure that powvr gets to where it is needed in 

toward regional transmission grids during the Clinton 1999, was voluntary, Gary Cohen, general Utilities But in its 26 order, the energy commission made its offer of price relief contingent on a filing by June 1 from the Independent System committing the state to a regional management plan. The PUC and the Assembly challenging requirement. anything, said, the state needs to increase control over its energy system while it recovers from its debut into deregulation, rather than submit to a authority that would be by the federal government. "This seem be the to doing experimenting," Cohen said. certainly have not been able to rely on FERC to look out for the interests of Californians." FOR STATE'S Hebert, chairman the commission, to say yesterday government would immediately yank the soft went into effect this week if it found ISO response "He said he didn't want to the case," said commission spokeswoman Tamara Young-Allen. "He wait to see what California files." PUC Commissioner Jeff Brown said he would be willing up some state control the grid in for price But, said, the measures granted fell far short of what California needed. "Hell, those are pretty toothless as they are," Brown said. The price in only during power The cap is the offered the least-efficient generating plant. can any they exceeded caps, by claiming high The controls were in place the first time yesterday, Stage 2 power emergency, meaning reserves fell below percent of available capacity. Florio said state managers' answer to the federal government will probably be that they are doing within of what a regional transmission organization would do. COULD PLAY A ROLE ISO manages the grid to ensure that power gets where is needed
 toward regional transmissioN grids 
duriNg the cliNtoN aDminIstrAtion in 1999, particiPAtioN was voluntary, said 
Gary COhen, gEnERal cOUnSel to The statE puBLIc UTiLiTieS COMmIssioN. 
BuT in its APril 26 order, tHe fEdEral energy coMMiSsion made iTs oFfer of 
limiteD prIce relIeF coNTingeNt oN a filIng by JUNe 1 from The IndepeNdENt 
SystEM OperatOR CoMmitTing the state to a reGIoNAl management plAn. 
The PuC ANd THE AsSemBly are chalLeNging THat requIReMENT. If ANything, Cohen 
sAid, the state NEedS to incReAse COntrol Over iTs ENerGy system whiLe it 
Recovers fRom its DIsastroUS debut iNto derEguLatIon, rAThEr ThaN sUBmiT To A 
reGIonAl authorItY tHat woUld bE OVERseeN by The fEderaL government. 
"ThIs dOesn'T SeeM to be The tiMe to Be Doing More exPerimEnTing," Cohen 
said. "We CertAinly have Not BeEn aBlE to reLY on FERc to LooK out for The 
inteREstS oF cALiFornians." 
WAITING FOR sTate'S rESPONSE 
curt HeBErT, cHAirman of ThE feDeraL COmmisSion, DEcLined to sAy yestERdAy 
Whether ThE goverNmEnt WouLd immEDiatEly yanK the soft Price CAps that went 
intO Effect this weeK If IT FoUNd thE ISo response unSatiSFactOry. 
"HE SaId hE Didn't Want tO pREjUDge the case," said commiSsIon spoKeswoMan 
Tamara YounG-Allen. "He wiLL WAit to see What cAlIFornia files." 
PUC commiSsioner JefF brown saiD he woUld be wilLing to givE UP some staTe 
cOntRol Of tHE GrId in exchange fOR MeanInGful priCe cOntrols. but, He sAid, 
The FeDeral measUres granTeD fElL fAr sHort oF What CaliFoRniA nEedEd. 
"HelL, Those cAps arE preTtY tOOthLess as tHEy ARE," BroWn SaId. 
ThE prIcE contRols ARe iN effect Only durinG poWEr shOrTaGes. The cAp is the 
price oFfEred by the lEaSt-eFficieNT GeneratiNg plant. And generators can 
CHallengE anY fedeRal rUling that TheY have eXceEDed the Caps, by ClaimInG 
hiGH Costs. 
tHE cOntRoLs were in plACE foR the fIrSt tiMe yesteRday, when the state 
deCLarEd a Stage 2 power EmeRgenCY, MeAniNG rESerVeS FelL BElow 5 percent of 
avAilable capAcITy. 
florio said STatE pOwer manAgers' anSwer tO The fedeRal governMent will 
pRoBablY BE thAt they are aLready doIng within cAlifoRNiA much Of wHat a 
reGiOnaL tranSmissiON orGanizAtion wOuLd do. 
ISo COULd PlAY A ROLE 
the ISO manages the grid to eNsure tHat poWer Gets to wheRe iT Is nEeded in 

 toward regional transmiss ion grids
duri ngthe  C lint on a dministrationi n 19 99, participation wasvolun ta r y, s a id  
Gar y Cohen ,  g e n era lco uns el to  thesta te Publ ic Utiliti esCo mmission. 
B u tin its Apr il26 order, th e f ederal  e ner g y com mis sionmade i t s offe r of 
lim it e d pric e  relief c on ting ent on a filing b y  J u ne 1 from theIndepe nd e nt Sys tem  Operatorco mmitt i ng thes ta t e toa  regional man agement pla n . The PU Cand the As sembl ya rechallenging  tha t require ment.I f anyth i ng, Coh en 
sa id,  th e st a te  n eed st o i n cr eas e  co ntrol ov er  i ts en ergy s y s temwhi le i t 
re covers from i tsdisa s tro us de but i ntode regul ation,  rath er  than submit to  a regionalaut ho rit ythatw ould b e o ver seen by  the fe d era lg o v er nment. 
"This does n' t se em to be  the t i me  t o  be doin gmor e ex p e rimen ting , "Cohen 
s aid. " W ece rtainly  h ave no tbee n a ble t o  rel y on F ERC to l ook o u t for the 
int e rests of Cali f or n i an s ." WAI TING FOR ST ATE' S  RES PONS E  Cur t  Hebe rt, c ha i rm a n of the federal co mm ission , dec lined to sayyesterdayw h ether th e go v er n ment would imm ediat ely yank t h e soft p ricecaps tha t went 
i n t o effect  th iswee k i f it  found the IS O resp on se unsa tis factory . "He  sa idhe  didn't w ant to p re ju dg ethe  case , " said c om mis si onspoke s woman
Tama ra Y ou ng - All en. "He wi l l  wai tto  see  wh at  Cali forn i a f iles."
PUC Comm iss i oner  J ef f Brown  said he woul dbe willing  t o g ive up s ome stat e 
control of the gridi n excha nge  formean ingful pr ice  contr ols .  But,he sai d, 
t he  fe d e ral m e a su res  g ranted fel l far  shor tof w hat Cal ifornia needed. 
" H ell , those capsare  pre t t ytoo t hl e ssas the y are," Brown sai d. 
The pr ic e  c ontrols ar e  in  e ffect o nly dur ing p o wer sho rtages. T he cap is  t he p r ice  offered b y the le ast-effic i ent g e ne ratin g p lant.An d g enera tors c a n chall enge a ny  feder al ru li ng thatthey have exceeded thecaps,by cl aim ing 
high  co s ts.  
The con trol s were inpla cefor t hef irsttime ye ste r day,when the state 
d ecl a r ed  a Stage 2p o w eremerg enc y , mean ingreserves fell bel o w 5 percent of  
av a i lab lec apac it y. 
Florio sai d s ta t e  power m an agers' answ er to th ef edera l gove rnment  will p r ob a bly be  tha t t hey are a lre ad y  doingwi th i n Cali forn ia  muchof wha t  a r e gional transmiss ion o r g aniza t ion  woul ddo. 
IS O  COU LD PLAY AROLE 
The I SO man ages  thegrid to  e nsuretha tpower gets to whereit is  needed  i n 

 toward_regional transmission_grids 
during the Clinton_administration in_1999,_participation was_voluntary,_said 
Gary Cohen,_general counsel to_the state Public Utilities_Commission. 
But in_its_April 26 order, the federal energy commission made its offer of 
limited price relief_contingent_on a_filing_by_June 1 from the Independent_
System Operator committing the state_to a_regional management plan. 
The PUC and the Assembly_are_challenging that requirement._If anything, Cohen 
said, the state needs to increase_control over its energy system while_it 
recovers from_its_disastrous_debut into deregulation, rather_than submit to a 
regional authority_that would be overseen by the_federal government. 
"This doesn't seem to be_the time to be doing more_experimenting," Cohen 
said. "We certainly_have not_been able to rely on_FERC to look_out for_the 
interests of_Californians." 
WAITING FOR STATE'S RESPONSE 
Curt_Hebert, chairman of_the federal commission, declined to say_yesterday_
whether the government_would_immediately_yank the_soft price caps_that_went 
into_effect_this week if it found the_ISO_response unsatisfactory. 
"He said he didn't want_to prejudge the case,"_said_commission spokeswoman 
Tamara Young-Allen._"He will wait to see_what California files." 
PUC Commissioner Jeff_Brown said_he would_be willing to give up some state 
control of the grid_in exchange for meaningful price controls._But, he said, 
the_federal measures_granted_fell far short_of_what California_needed. 
"Hell, those caps are pretty toothless_as they_are," Brown said. 
The price controls_are in effect only_during_power shortages. The cap is the_
price offered by the least-efficient generating_plant. And generators can 
challenge_any_federal_ruling that they have exceeded_the caps, by claiming 
high costs._
The controls were_in place for the first time yesterday,_when_the state 
declared a Stage 2_power_emergency, meaning reserves fell below 5_percent_of_
available capacity. 
Florio said state_power managers' answer to the federal_government will 
probably be that they are already doing_within California much_of what a 
regional transmission_organization_would_do. 
ISO COULD PLAY A ROLE 
The ISO manages the_grid to_ensure that power_gets to where it is needed in 
