MEDIA ALERT
FOR IMMEDIATE RELEASE

May 21, 2001

OAKLAND HAS JOINED THE STATE LAWSUIT AGAINST THE FEDERAL ENERGY REGULATORY COMMISSION (FERC)

Who:
Jane Brunner, Vice-Mayor
Ignacio De La Fuente, President of the City Council
Oakland City Council Members
John Russo, City Attorney

Where:
Green Building Resource Center
250 Frank H. Ogawa Plaza, second floor

When:
Tuesday, May 22 at 10:00 am

What:
Press conference to announce that Oakland has joined the State lawsuit against the Federal Energy Regulatory Commission (FERC)

Contact:
Vice Mayor Jane Brunner, (510-238-7001, pgr. 510-382-4119)

Oakland Joins the State Lawsuit Against the Federal Energy Regulatory Commission
OAKLAND, CA – Vice Mayor Jane Brunner announced today (May 22, 2001) that the City of Oakland has filed suit against the Federal Energy Regulatory Commission (FERC) for refusing to prevent power generator price gouging that threatens the health and safety of all Californians, especially the elderly and disabled. The California State Legislature will also announce its State lawsuit today in a press conference to be held in Sacramento at 2 PM.

According to Vice Mayor Jane Brunner, "Oakland is proud to join California in the lawsuit against FERC." She added, "Deregulation has failed. To begin to address the energy problem, Oaklanders need to conserve energy, California needs to build new generators, and the Federal government must cap out-of-state energy generation costs."

According to Oakland City Attorney, John Russo, "This action serves notice that the Federal Energy Regulatory Commission will have to accept its responsibility to protect utility consumers in California and the nation from runaway pricing," Russo said.
The writ argues that FERC has been negligent in its duties to insure fair electricity rates for California residents. It asks the court to order FERC to comply with the statutory requirement that it set "just and reasonable rates" to which power generators must then adhere.

"A crisis of unprecedented dimensions is already taking shape in California. The public health, safety and welfare of the state’s 34 million residents is in jeopardy due to the tragic consequences of rolling blackouts and punitive prices," said the writ, filed on behalf of Oakland and the State by the Burlingame law firm Cotchett, Pitre & Simon.

According to Governor Gray Davis’ office, in the Spring of 2000 a megawatt hour of electricity in California cost an average of $30. In December 2000, after FERC removed the cap of $250 per megawatt hour, the spot market price shot up to $1,500 per megawatt hour, and a week ago it was $1,900. Adds Vice Mayor Jane Brunner, "Out-of-state power companies are gouging California consumers while the federal government sits and does nothing."