Eshoo Issues Statement on Federal Court Ruling on Energy Refunds
Eshoo Issues Statement on Federal Court Ruling on Energy Refunds
September 10, 2004 - Rep. Anna G. Eshoo released the following statement regarding yesterday's Ninth Circuit Court of Appeals' ruling that the Federal Energy Regulatory Commission (FERC) should order retroactive refunds to California consumers stemming from the manipulation of energy market in 2000-2001:
"The Ninth Circuit Court of Appeals' ruling affirms what Members of the California Democratic Congressional Delegation have been arguing for the past four years.
The court rebuked FERC for abdicating its regulatory responsibility and subjecting consumers to a variety of market machinations as a result. According the decision, FERC improperly concluded that it could not order retroactive refunds for the overcharges consumers paid.
For its part, the FERC called the ruling a 'clarification of scope' and called on Congress to give it greater authority to assess civil penalties. FERC is again missing the boat. The ruling is a repudiation of FERC's actions.
History shows that when FERC has the discretion to protect consumers it doesn't, and the court's decision leaves the door open for FERC to develop another reason to deny consumers the refunds they deserve. That's why strong bipartisan leadership from California's officials is needed.
While the Governor of California has called the judgment 'fantastic,' the question is, will he do some heavy lifting?
One of the first things the California Democrats requested of the Governor when he was elected last fall was his support in the effort to secure refunds for California consumers:
California Democrats wrote to the Governor on October 15, 2003 to seek his support following his election,
We raised the issue when he met the bipartisan delegation in Washington, DC on October 29, 2003,
On February 26, 2004, we wrote to him again.
There was no response to the letters and no action from the Governor except a June 2004 letter to FERC supporting settlement negotiations and praising the energy companies for their willingness to negotiate. Now he calls the court's ruling 'fantastic.'
Without active leadership from all quarters, including the Governor, the danger is that FERC will return to its old habit of coddling those who overcharged California consumers."