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

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

The Honorable Curt Hebert
April 6, 2001
Page 2

 

Dirk Kempthorne
Governor of Idaho

 

Kenny C. Guinn
Governor of Nevada

 

John Hoeven
Governor of North Dakota

 

Jim Geringer
Governor of Wyoming

 

cc: Honorable Richard Cheney
Honorable Frank Murkowski
Honorable Joe Barton
Honorable William L. Massey
Honorable Linda Key Breathitt

Judy Martz
Governor of Montana

 

Gary Johnson
Governor of New Mexico

 

Michael O. Leavitt
Governor of Utah

 

 

 

 

 

 

 

F:\Energy\Western Governors letter to Chairman Hebert - final.wpd

 

 

 

 

 

 

 
April 12, 2001