Letter to the American Public Power Association (Member Organizations)

Note: Text Only Example. This letter was sent to several organizations.



April 10, 1997

As I am sure you are aware, the Commerce Committee is examining the question of whether or not the Congress should enact legislation concerning the electricity industry. This is a complex policy area, and it is important to have as full an understanding of the facts as possible before the Committee reaches any decisions.

In order to gain a better understanding of the relevant issues, I would appreciate your answers to the following questions. To ensure these are received on a timely basis, please provide your response by May 9, 1997. Please feel free to skip a question if you do not have enough information to answer it. Also, please feel free to send any additional comments you may have on these issues.

  1. What are your biggest concerns about retail competition? If retail competition has been adopted by the state(s) you serve, or is under active consideration, what position have you taken and why?

  2. Do you believe Congress should enact legislation mandating retail competition by a date certain, and why or why not?

  3. Some privately owned utilities assert that public power enjoys a broad range of tax-related and other advantages which independently owned utilities (IOU) do not, and that these would unfairly benefit public power in a competitive retail marketplace. Do you agree? Do IOU's enjoy any benefits public power does not?

  4. If Congress were to mandate retail competition, please provide any recommendations you have with respect to the following issues.

    a. Stranded investment: How should IOU's stranded investment be treated? Does your company face anything similar and, if so, how should it be treated?

    b. Reciprocity: Should Congress consider provisions barring access to markets in states which have adopted retail competition by generators in states which have not? Which interests would this affect, and how?

    c. Local distribution companies (LDC): Should Congress require unbundling of LDC services in order to subject them to competition?

    I realize preparing a response to these questions will take time and effort on your part. I appreciate any help you can provide in furthering my understanding of the important issues involved in the ongoing debate on restructuring the electric power industry. Should you have any questions, please contact Sue Sheridan, Minority Counsel, at (202) 226-3400. Your response should be sent to:

    The Honorable John D. Dingell, Ranking Member
    Commerce Committee Democratic Office
    564 Ford House Office Building
    U.S. House of Representatives
    Washington, D.C. 20515

    With every good wish.

    Sincerely,

    JOHN D. DINGELL
    RANKING MEMBER



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