Prepared Direct Testimony of Robert McCullough on Behalf of the ...

E'age 4 <strong>of</strong> 76SEATAC-400California a continuing exercise in learning. I have been working on these issues a verylong time. During the early 1980's I was involved in California bulk power exports for PortlandGeneral Electric. I was considered an expert, in those early days, in the wholesale transactionsover the Pacific Northwest Intertie. I followed the amazing (at the time developments) <strong>of</strong> EQuad 7 and the BRPU. When the development <strong>of</strong> California's market began, I representedPGE in the hearings at the CPUC. I have helped utilities and industries buy and sell power in theCalifornia market. During this period I have written and spoken extensively on the Californiamarket.WithholdingWhen the crisis began, I was retained by a consortia <strong>of</strong> utilities and industries to investigate theprice excursions. My initial reports gained national attention at the time, and this stature hascontinued to the present day. We have worked on the crisis for a variety <strong>of</strong> clients, ranging fromthe California Attorney General's <strong>of</strong>fice to Alcan Aluminum. As I mentioned above, I havetestified before Congress three times on Enron and the California market failure as well as infront <strong>of</strong> the California State Senate Committee to Investigate Price Manipulation <strong>of</strong> theWholesale Energy Market. I have testified before FERC on California issues in FERC DocketNos. EL01-10-000 and EL02-28-000, et (11.Q. What is the role <strong>of</strong> withholding generation in the California crisis?A. Extensive evidence exists that California generators either chose to not bid or to not generatethroughout the California crisis. A recent California Public Utilities Commission report