They also drafted a list of additional measures states should consider to head off energy shortages and drastic rate hikes. Among them: statewide campaigns to inform the public about the severity of the problem, ways to reduce energy use and costs during shortages as well as encouraging utilities to establish or expand voluntary programs to reduce unnecessary electricity consumption.
Urging the Bush Administration to take immediate action to head off what could turn into a disaster, Oregon Governor John Kitzhaber said, "We in the western states are doing what we can to alleviate the problems caused by the immediate crisis. But the Federal Government must exercise its responsibility. I support electricity deregulation that produces market prices, but it is increasingly untenable for the Federal Government to continue to allow the monopolistic prices that have prevailed at the wholesale level this winter."
Noting that many Pacific Northwest utilities have raised their rates to percentages that "defy comprehension," the governor added, "This represents a growing transfer of wealth from the citizens . . . to energy marketers, a transfer that results in no greater issuance of future power supply."
Responding to the governor's call for Federal intervention, newly appointed US Energy Secretary Spencer Abraham, who attended the summit, said, "I have grave concerns" about imposing price caps. President Bush said Monday that he would not invoke price caps to curb electricity rates, but instead is exploring ways to boost supplies to meet demand, including importing power from Mexico and stepping up oil and gas exploration on Federal lands.
Bush did not disclose details of a plan for powering up western states with Mexican energy, but he promised to speak with Mexican President Vicente Fox about the problem when he visits there later this month.
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