Senator Feinstein Urges FERC to Investigate Rising
Natural Gas Prices in California
December 20, 2000

San Francisco, CA – U.S. Senator Dianne Feinstein (D-Calif.) today urged the Federal Energy Regulatory Commission to investigate the exorbitant rise in natural gas prices in California.

In a letter to FERC Chairman James Hoecker, Senator Feinstein wrote, “People in California need to know why they are paying more than anyone else in the country for heating gas, and why they are paying 17 times more than they were last year.”

“High gas prices threaten homeowners and businesses which have already been hurt by soaring electricity prices,” Senator Feinstein said. “I have heard from many employers that they will have to shutdown or lay off employees to compensate for their increased costs. Electricity and natural gas are the backbone of the economy and no one can indefinitely sustain the energy costs Californians are experiencing.”

“To remedy the severe damage inflicted by high natural gas prices, we must determine what is causing the problem in California,” Senator Feinstein said. “While there may be a number of contributing factors, I am calling on FERC to immediately identify actual causes and suggest appropriate remedies.”

Natural gas prices have increased this year across the country, but while they are averaging $10-11 per million BTUs in the Midwest and on the East Coast, they have soared to record levels in California. Last week, for example, natural gas prices in Southern California traded at around $50 per million BTUs compared with less than $3 per million BTUs at the same time last year.

A copy of the letter to Chairman Hoecker is available upon request.

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