Cantwell urges FERC to protect consumers during California natural gas shortage

Ranking Member of the Senate Committee on Energy and Natural Resources Maria Cantwell (D-WA) urged the Federal Regulatory Commission (FERC) to protect consumers against shady business practices in light of California’s natural gas shortage.

“As we learned during the 2000-2001 energy crisis, a problem with energy markets in California can spread quickly to Washington and other Western states,” Cantwell said. “I am concerned that natural gas shortages and supply disruptions in Southern California will increase electricity and natural gas prices throughout the region and enable generators and marketers to engage in Enron-like tactics to pad their profit statements at the expense of consumers.”

Cantwell made her statement in a letter to FERC Chairman Norman C. Bay.

Four months ago, the Southern California Aliso Canyon storage facility announced that an estimated 5.4 billion cubic feet of natural gas had leaked from its facility in Los Angeles County. The leak was plugged, but much work remains before the facility can adequately meet regional demand.

Officials expect up to 31 days this year during which natural gas demand will exceed supply, potentially leading to 14 days of rolling blackouts in Southern California this summer. Cantwell expressed concern that the situation would attract dishonest businesses and utilities looking to capitalize on consumers, and urged the FERC to prevent such an event by using its authority to prevent raised electricity and natural gas prices throughout the entire region.