WASHINGTON - 03.23.01 | As part for her efforts to help bring an end to California's electricity shortages, Senator Boxer (D-CA) today called once again upon the Department of Justice to launch a federal investigation into the possibility of collusion by electricity generators. In a letter to Attorney General John Ashcroft, Senator Boxer highlighted the need for federal action by pointing to new evidence of price gouging.
According to a California Independent System Operator report released this week, wholesale electricity suppliers overcharged California by $6.27 billion beginning last May. These strategies caused the price of wholesale electricity to increase.
At the same time, the generators' net income increased substantially from 2000 compared to 1999. For example, Dynegy's net income rose 229 percent, AES Corporation 76 percent, and Calpine 240 percent.
In a letter to Attorney General Ashcroft, Senator Boxer wrote, "This market manipulation has led to a series of events that have resulted in blackouts across the state and economic losses for California businesses."
Senator Boxer called upon the Bush Administration to begin a prompt investigation of this matter stating, "I am concerned that market power abuse by generators in the electricity market will continue, so prices will be inflated and consumers gouged...The Department of Justice must act to ensure the public's confidence that collusion will not continue to occur in the California electricity market."
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