Early bills would leave electric restructuring authority with states
By Staff -- Purchasing, 4/8/1999
While large electricity end-user groups and pro-competition suppliers will continue their push this year for a date-certain federal mandate on electric-industry restructuring, it seems that two bills filed recently with Congress would attempt to preclude such an objective.The first bill (H.R. 667) was filed in the House by Commerce Committee member Richard Burr (R-N.C.) on February 10. The second bill (S.516) was filed in the Senate by Craig Thomas (R-Wyo.) on March 3.
For "Clarification of state authority to order retail wheeling," section 3(a) of the House bill would amend Section 212(h) of the Federal Power Act to state that: "Nothing in this subsection shall affect any authority of any State or local government under State law concerning the transmission or sale of electric energy directly to an ultimate customer."
The Senate bill, meantime, says: "States should continue to take the lead in managing the transition to a competitive electricity marketplace; and determine the retail electric policies that provide the greatest benefits to consumers in a manner that recognizes the unique characteristics of each State." It says also that, "The Federal Government must address the matters within Federal jurisdiction as necessary to promote competition, but such actions must not be made at the expense of State authority."
Both bills have been referred to committee.
Americans for Affordable Electricity--perhaps the broadest coalition of pro-competition interests in the U.S.--has taken the position that, "Federal action is necessary to complete the transition that will allow all consumers the right to choose their electricity supplier. To fully enjoy the benefits of competition, a seamless market for buying and selling electricity is needed, as well as fair and uniform rules governing the nation's transmission system." As such, AAE says it advocates creation of "an efficient, reliable, equitable interstate system for transmitting and distributing competitively priced electricity, including a date-certain provision to ensure that citizens in those states that fail to act quickly will not lose out."
Meantime, another broad-based coalition--representing state and local government groups--has formed in strenuous opposition to a date-certain federal mandate. The State and Local Electric Restructuring Coalition, comprising such groups as the National Governors' Association (NGA) and the National Association of Regulatory Utility Commissioners (naruc), says, "Any action taken by Congress should enable states to restructure the electric industry but not impose a mandate on states to do so. Should Congress legislate, it must grandfather state actions to establish retail competition. The Coalition opposes any provisions that would establish a date certain for competition or only grandfather states actions temporarily."
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