ISO rejects FERC's order to replace board

At the urging of Gov. Gray Davis, California's Independent System Operator voted Wednesday to ignore the nation's top energy regulator's order to disband and replace the current California ISO board.

The 4-0 vote was another step in the long-running battle between Davis and other California Democratic officials and the Federal Energy Regulatory Commission, which has a majority of Republicans appointed by President Bush.

The FERC did a investigation when the charges were first made and gave the companies involved a clean bill of health. About a year later claims came out that at least two companies were trading power back and forth to drive up the price before sending it to Calif. Now the FERC is demanding that state board members be changed? Sounds like FERC is trying to cover their backsides to me.

Thanks for the heads up!

There was another article in the SacBee that said what the ISO board actually did. I think it is quite telling and explains why this who thing is for show and not for real.

Minutes later, the four-member ISO board voted unanimously to fight FERC's order three ways.

First, it will ask FERC to reconsider its July 17 order calling for a new board. Second, it will ask FERC to stay the order during the reconsideration. And third, it will ignore FERC's order to begin work almost immediately on the structure for a new, nine-member governing board.

So the way the ISO ignores FERC is by first asking them to reconsider, then to ask them to pretty please hold off on imposing or enforcing the FERC order. Yeah, right. FERC staff will make these guys pay big time.

Now on to the other fun stuff in that other article....

FERC contends the current board is a tangle of self-interest, with the state both buying power on behalf of ailing utilities and running the power-buying system. Generators have complained the situation gives the state unfair advantages.

Sounds like FERC has some valid reasons for telling Gov. Davis to change things.

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