Court: FERC overreached in trying to replace California board

[Kadie]

Court: FERC overreached in trying to replace California board
The Associated Press

Last Updated 10:38 am PDT Tuesday, June 22, 2004
WASHINGTON (AP) - An appeals court Tuesday strongly rebuked federal energy regulators for a 2002 attempt to replace the board that manages California's electricity grid.

The move by the Federal Energy Regulatory Commission was an "unprecedented invasion of internal corporate governance," said an order by the U.S. Court of Appeals for the District of Columbia Circuit.

The ruling overturns FERC's order, issued in the wake of the California energy crisis, that the California Independent System Operator disband and create a new governing structure. FERC contended the ISO was not independent because California's governor appointed all its members.

The move infuriated then-Gov. Gray Davis, and his appointees on the ISO never complied with the order, instead voting to ignore it.

The stinging, 16-page ruling vindicates Davis' position.

more... http://www.sacbee.com/state_wire/story/9742918p-10665882c.html