Williams Confident FERC Will Allow Continuation of Market-Based Rate Authority For California Power Sales

Apr 04, 2001, 01:00 ET from Williams

    TULSA, Okla., April 4 /PRNewswire/ -- Williams (NYSE:   WMB) today said it
 is confident the Federal Energy Regulatory Commission will agree that the
 company's energy marketing and trading business should continue to be allowed
 to provide power and ancillary services at market-based rates in California
 wholesale markets.
     Williams last month made a routine compliance filing with the FERC in
 support of continuation of its market-based rate authority.  That
 authorization requires such filings every three years with the FERC.
     In response to Williams' compliance filing, FERC earlier this week
 received requests to reject such continuation and to suspend Williams' ability
 to sell power in California at market-based rates.
     The requests, which Williams characterizes as opportunistic and
 fundamentally flawed, came from two California utilities, Southern California
 Edison and Pacific Gas & Electric, as well as the California Independent
 System Operator, the California Public Utilities Commission and the California
 Electricity Oversight Board.  The requests ask that Williams be required to
 sell power at rates set by the FERC.
     "In this highly emotional environment, we understand the growing
 temptation to find fault outside of one's own backyard," said Steve Malcolm,
 executive vice president of Williams.  "Williams is committed to keeping our
 focus on leading solutions to the power crisis, but we can't do it alone.  We
 expect the FERC and others to be part of the solution."
     Williams will respond fully to the FERC to support continuation of its
 authority to charge market-based rates in California markets.  Williams
 markets just under 10 percent of the approximately 40,000 megawatts of
 generation located in California.  Most of the power Williams markets in
 California is sold under long-term contracts with fixed pricing.
 
     About Williams
     Williams, through its subsidiaries, connects businesses to energy and
 communications.  The company delivers innovative, reliable products and
 services through its extensive networks of energy distributing pipelines and
 high-speed fiber-optic cables.  Williams information is available at
 www.williams.com.
 
     Portions of this document may constitute "forward-looking statements" as
 defined by federal law.  Although the company believes any such statements are
 based on reasonable assumptions, there is no assurance that actual outcomes
 will not be materially different.  Any such statements are made in reliance on
 the "safe harbor" protections provided under the Private Securities Reform Act
 of 1995.  Additional information about issues that could lead to material
 changes in performance is contained in the company's annual reports filed with
 the Securities and Exchange Commission.
 
 

SOURCE Williams
    TULSA, Okla., April 4 /PRNewswire/ -- Williams (NYSE:   WMB) today said it
 is confident the Federal Energy Regulatory Commission will agree that the
 company's energy marketing and trading business should continue to be allowed
 to provide power and ancillary services at market-based rates in California
 wholesale markets.
     Williams last month made a routine compliance filing with the FERC in
 support of continuation of its market-based rate authority.  That
 authorization requires such filings every three years with the FERC.
     In response to Williams' compliance filing, FERC earlier this week
 received requests to reject such continuation and to suspend Williams' ability
 to sell power in California at market-based rates.
     The requests, which Williams characterizes as opportunistic and
 fundamentally flawed, came from two California utilities, Southern California
 Edison and Pacific Gas & Electric, as well as the California Independent
 System Operator, the California Public Utilities Commission and the California
 Electricity Oversight Board.  The requests ask that Williams be required to
 sell power at rates set by the FERC.
     "In this highly emotional environment, we understand the growing
 temptation to find fault outside of one's own backyard," said Steve Malcolm,
 executive vice president of Williams.  "Williams is committed to keeping our
 focus on leading solutions to the power crisis, but we can't do it alone.  We
 expect the FERC and others to be part of the solution."
     Williams will respond fully to the FERC to support continuation of its
 authority to charge market-based rates in California markets.  Williams
 markets just under 10 percent of the approximately 40,000 megawatts of
 generation located in California.  Most of the power Williams markets in
 California is sold under long-term contracts with fixed pricing.
 
     About Williams
     Williams, through its subsidiaries, connects businesses to energy and
 communications.  The company delivers innovative, reliable products and
 services through its extensive networks of energy distributing pipelines and
 high-speed fiber-optic cables.  Williams information is available at
 www.williams.com.
 
     Portions of this document may constitute "forward-looking statements" as
 defined by federal law.  Although the company believes any such statements are
 based on reasonable assumptions, there is no assurance that actual outcomes
 will not be materially different.  Any such statements are made in reliance on
 the "safe harbor" protections provided under the Private Securities Reform Act
 of 1995.  Additional information about issues that could lead to material
 changes in performance is contained in the company's annual reports filed with
 the Securities and Exchange Commission.
 
 SOURCE  Williams