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Letter to the Large Public Power Council 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 concerns does your company have in connection with increased competition in wholesale markets? If state(s) you serve have adopted, or are considering adopting retail competition, what issues have been most important to you and what, if any, concerns do you have with respect to state action?
  2. What challenges would your company face if Congress mandated retail competition by a date certain? How would this affect your rights and responsibilities? What issues would have to be addressed, including but not limited to modifications to the tax laws, for you to successfully make the transition? What consequences would result if such issues are not specifically addressed, what interests would be affected, and how?
  3. Several states have either adopted or are considering securitization plans to address stranded cost recovery as part of a state retail competition plan. Whose interests are served by such an approach, and what if any risks are posed and for whom?
  4. Some states have argued that Congress should enact "reciprocity" requirements barring sellers in states which have not adopted retail competition from access to markets in states which have done so. Do you believe such legislation is warranted, and why? What consequences would ensue if Congress does not enact "reciprocity" provisions?

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

Prepared by the Committee on Energy and Commerce
2125 Rayburn House Office Building, Washington, DC 20515