The California Public Utilities Commission and the California Energy Commission will hold a special joint meeting Tuesday to address the recent spike in natural gas prices.
sent a letter to Washington D.C. asking for a federal investigation.MORE:Borenstein is faculty director of the Energy Institute at Haas. He was referring to California Governor Gavin Newsom's call, in the form of a letter, for a federal investigation into natural gas price spikes in California and other West Coast states. Newsom sent the letter to the Federal Energy Regulatory Commission.
"There's some precedent that during the California electricity crisis in 2000/2001 one of the problems was that a pipeline had been disrupted from an explosion, but another problem was the pipeline company was actually restricting the flow on it in order to raise prices even higher," said Borenstein.Since late November of last year, there have been huge increases in the cost of natural gas.
Borenstein says that spike was around 80% in much of Northern California and 300% in parts of Southern California. He also said that despite there being less pipeline capacity coming into California and storage facilities not being what they were, there should still be questions here.
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