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. As you know, a number of proposals have been made to legislatively "restructure" the electric power industry. Do you believe Congress needs to enact new law in this area?

2. What impact is state activity on restructuring have on consumers? Do you have any concerns about any of the retail competition plans adopted by, or under consideration in, the states?

3. In hearings before the Energy and Power Subcommittee during the last Congress, some witnesses took the position that Congressional legislation mandating retail competition is necessary to protect the interests of small and residential consumers. This was based on the assertion that large industrial customers are able to negotiate lower rates with state utility commissions, and the incidence of such rate reductions is on the increase.

   a. Do you agree with these observations? Does the answer vary state by state, region by region, or industry by industry?

   b. Are you aware of any study or analysis that would confirm or refute these assertions?

4. Please describe any specific concerns you have restructuring proposals pending before Congress. What impact might they have on consumers? Might the impact vary for different customer classes?

5. Some legislative proposals have sought to guarantee compensation for utilities' stranded costs, some have banned it, and some have left the matter to the states. Do you have a position on this issue? If Congress were to address the issue in legislation, do you have any recommendations?

6. Recently there has been increased discussion of the need for Congress to enact "reciprocity" requirements barring retail power sales by parties located in states which have not adopted retail competition to parties in states which have adopted retail competition.

   a. Do you have a position on this issue?

   b. Which interests would benefit from a federal reciprocity requirement, which would not, and why?

   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

   
   

   
   Back to the Electricity Restructuring Home Page