HOUSE JOINT RESOLUTION NO. 44
INTRODUCED BY A. CURTISS, R. BROWN, DELL, FISHER, G. FORRESTER, HAINES, JUNEAU, MATTHEWS, D. MOOD, OLSON, SCHMIDT, STORY
A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA REQUESTING FEDERAL INTERVENTION TO STABILIZE WHOLESALE ELECTRICITY PRICES IN THE WEST.
WHEREAS, wholesale prices of electricity have soared to unprecedented levels, reaching as high as 30 times the prices of a year ago; and
WHEREAS, many of the state's largest businesses purchase power at rates tied to wholesale price indices, and a growing number of these businesses have been compelled to curtail production or cease operations altogether and lay off hundreds of workers because of high energy costs; and
WHEREAS, wholesale price increases will lead to sharp increases in retail electricity prices for business, agricultural, and residential consumers in Montana in the near future, with potentially devastating economic consequences; and
WHEREAS, high wholesale energy prices threaten the solvency of utilities in Montana and throughout the Northwest region; and
WHEREAS, taxpayer-supported public entities such as the Montana university system, other public schools, and local governments face unanticipated cost increases for energy and may have to scale back their operations to meet these costs; and
WHEREAS, the Federal Energy Regulatory Commission exercises jurisdiction over wholesale power generation sold in interstate commerce; and
WHEREAS, actions taken to date by the federal Department of Energy and the Federal Energy Regulatory Commission to address problems in the wholesale market have not resulted in any meaningful reduction in wholesale power prices; and
WHEREAS, in December 2000 and in January, 2001 the United States Secretary of Energy issued orders requiring certain energy entities to generate, deliver, interchange, and transmit electrical energy when requested by the California independent system operator, and these orders have been extended on repeated additional occasions; and
WHEREAS, several of the companies that received the energy from these entities are in an unstable financial condition, and there are serious questions about their ability to meet their obligations to pay for this electricity; and
WHEREAS, without strong and immediate action by the federal government to lower wholesale power prices, Montana and other western states could suffer long-term and irreversible economic harm.
NOW, THEREFORE, BE IT RESOLVED BY THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA:
That the President of the United States, the U.S. Department of Energy, and the Federal Energy Regulatory Commission take strong, short-term measures to reduce wholesale prices throughout the Western region.
BE IT FURTHER RESOLVED, that the new administration act immediately to develop and implement a long-term strategy to reform the wholesale energy market to avoid continued price spikes that threaten to undermine the prosperity of the western United States.
BE IT FURTHER RESOLVED, that the new administration commit to providing assistance to low-income citizens who are most at risk from volatile energy prices.
BE IT FURTHER RESOLVED, that the federal government commit to allowing the western states to work toward fulfilling the region's energy supply needs through existing relationships and to refraining from any additional orders directing suppliers to provide electricity to California.
BE IT FURTHER RESOLVED, that copies of this resolution be immediately transmitted to the Honorable George W. Bush, President of the United States, the Honorable Spencer Abraham, Secretary of Energy, the members of the Federal Energy Regulatory Commission, the President of the United States Senate, the Speaker of the House of Representatives, and each member of Congress from the state of Montana.
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