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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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