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Jane Dee Hull
State of Arizona
Bill Owens
State of Colorado
Dirk Kempthorne
State of Idaho
Judy Martz
State of Montana
Kenny C. Guinn
State of Nevada
Gary Johnson
State of New Mexico
John Hoeven
State of North Dakota
Michael O. Leavitt
State of Utah
Jim Geringer
State of Wyoming |
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April 6, 2001
The Honorable Curt Hebert, Jr.
Chairman
Federal Energy Regulatory Commission
888 First St., N.E.
Washington, D.C. 20426
Dear Chairman Hebert:
A number of Western Governors wrote Secretary Abraham in
early February expressing our support for the Administration =s
decision to let sales orders on electricity expire. The orders were
initially issued by the Clinton Administration in an unsuccessful effort
to help address the lack of an adequate supply of electricity in
California.
At the time, many Western Governors asserted that
California and Governor Davis should be given the opportunity to address
the electricity shortages that existed in the state. We believed that
federal interference had the potential to harm other Western states
without producing the reform needed to correct the electricity shortage in
California. Governor Davis and other California officials are now taking
the difficult steps necessary to begin the process of restoring the
electricity market in his state.
While California still lacks an adequate supply of
electricity in the near term, by raising electric rates it is both
encouraging conservation and the development of further generation.
Federal rate controls would have done just the opposite, and would only
discourage construction of badly needed electric generation, not only in
California but in the rest of the West.
Your resistance to the considerable pressure to impose Apenny
wise and pound foolish@
rate controls has served the long-term interest of our region, while
allowing California to work its way out of this difficult situation.
Likewise, your recent actions to streamline electric sales in the West
have been valuable and appreciated.
We look forward to a continued dialogue on the many
challenging issues that are critical to the energy future of our region.
Sincerely,
Jane Dee
Hull
Bill Owens
Governor of
Arizona Governor
of Colorado
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