|  | Excuse for more deregulation   { September 3 2003 }
 Original Source Link:  (May no longer be active)(202) 347-0020 * http://www.accuracy.org * ipa@accuracy.org
 | Institute for Public Accuracy 915 National Press Building, Washington, D.C. 20045
 (202) 347-0020 * http://www.accuracy.org * ipa@accuracy.org
 ___________________________________________________
 
 Wednesday, September 3, 2003
 Interviews Available
 Electricity and Deregulation: More Corporate Scams?
 
 WENONAH HAUTER, whauter@citizen.org, http://www.citizen.org/cmep
 TYSON SLOCUM, tslocum@citizen.org
 Hauter is director of Public Citizen's Critical Mass Energy and
 Environment Program; Slocum is research director for the group. Hauter said
 today: "The House blackout hearings today and tomorrow will be nothing more
 than a high-wire act promoting transmission policies benefitting
 Enron-esque power marketers at the expense of consumers. That's because the
 House proposes sticking consumers with a $100 billion tab for the
 construction of new transmission lines that big energy companies want but
 consumers don't need. Instead of pandering to an electric industry that
 gave more than $40 million to Congress since 1999 (more than two-thirds to
 the GOP), the focus of the hearings should be on protecting consumers by
 re-evaluating the wisdom of deregulation. After all, deregulation is the
 main factor behind the blackouts. First, America's transmission system was
 designed to accommodate local electricity markets, not the large,
 freewheeling trading of electricity and movement of power over long
 distances under deregulation. Sending power over a much wider area strains
 a transmission system designed to serve local utilities. Second,
 deregulation means utilities are no longer required to reinvest their
 profits back into the transmission system. That's why re-investment in
 wires has fallen by hundreds of millions of dollars since deregulation:
 energy companies simply aren't willing to invest their money where there's
 no chance of making runaway profits. To make matters worse, President Bush
 and Tom DeLay want to eliminate the ability of citizens to have any input
 on the construction of new transmission lines."
 
 ENVER MASUD, enver@his.com, http://www.twf.org/bio/em.html
 Masud managed the U.S. National Power Grid Study in 1980 and the
 National Electric Reliability Study for the U.S. Department of Energy.
 Since 1987 he has consulted internationally in the electric power sector.
 He set up and directed the Operations Review Division at the Iowa Commerce
 Commission which, among other things, persuaded Iowa utilities to better
 coordinate operations for savings of $50 million annually. He said today:
 "President Bush claims that the blackout was due to 'antiquated
 transmission' -- a result of not having a fully competitive market. Not
 true -- the blackout was a failure of system protection schemes. The
 'antiquated transmission' is yet another outcome of failed utility
 restructuring and the promotion of 'competition' which provided independent
 power producers an opportunity for greater profits than under traditional
 utility regulation."
 
 HARVEY WASSERMAN, nonukeshw@aol.com
 Wasserman, who lives in Ohio, is author of "The Last Energy War: The
 Battle Over Utility Deregulation." He said today: "The barons of electric
 power, like FirstEnergy, based here in Ohio, claimed deregulation would
 bring lower prices and increased reliability, but the opposite is twice
 true. With no one minding the store, FirstEnergy has operated the
 Davis-Besse nuclear plant with a hole in its head, has spent $400 million
 to bring it on line without ever consulting the public, and has set off the
 unprecedented blackout of 50 million people, all while raising rates and
 swallowing other utilities. When it was deregulated by the Ohio legislature
 ... FirstEnergy took nearly $9 billion in 'stranded cost' subsidies from
 the ratepayers, allegedly to help bring about competition. Because
 FirstEnergy and its president, Anthony Alexander, have raised huge amounts
 of money for George W. Bush, they are above the law, and will not be
 prosecuted..."
 
 For more information, contact at the Institute for Public Accuracy:
 Sam Husseini, (202) 347-0020; or David Zupan, (541) 484-9167
 
 
 
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