Federal regulators have decided to impose broad price controls on electricity sales in California, reversing their previous stance and contradicting the Bush administration's steadfast opposition to federal intervention in the state's energy market.
In a compromise, two of three commissioners of the Federal Energy Regulatory Commission voted to cap electricity prices whenever supplies fall within 7.5% of demand in the state's volatile electricity market.
The caps went into effect on May 1 and will last one year. The controls should help California save billions of dollars it would otherwise pay to electricity generators that state officials have accused of price gouging.
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