[Congressional Record Volume 143, Number 1 (Tuesday, January 7, 1997)]
[Extensions of Remarks]
[Page E68]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       COMMENTS UPON INTRODUCTION OF THE RATEPAYER PROTECTION ACT

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                           HON. CLIFF STEARNS

                               of florida

                    in the house of representatives

                        Tuesday, January 7, 1997

  Mr. STEARNS. Mr. Speaker, I rise today to introduce legislation that 
will not only save American consumers billions of dollars, but also 
reduce Federal regulation and promote competition in the electric power 
industry.
  My bill will prospectively repeal section 210 of the Public Utility 
Regulatory Policies Act of 1978--PURPA. Section 210 mandates utilities 
to buy power from a certain privileged class of generators of 
electricity at prices set not by the free market but by the government. 
In fact, the independent Utility Data Institute estimates that 
consumers pay as much as $8 billion a year more for their electric 
energy as a consequence of this anti-competitive mandate.
  Simply put, PURPA is a Federal barrier to a more efficient, cost-
effective, and competitive electricity industry. Each day we wait to 
deal with PURPA is another day that this mandate distorts electric 
markets and creates liabilities that will become stranded investments. 
Already, PURPA is estimated to have burdened the market with over $38 
billion in stranded costs.
  As I said upon introduction of virtually identical legislation during 
the 104th Congress, my only interest in introducing this bill lies in 
achieving the most efficient and most cost-effective means of electric 
generation for America's consumers. I am prepared to move forward with 
this bill as introduced, or as a part of a much broader legislative 
effort. Indeed, I am anxious to work with Chairman Schaefer, Chairman 
Bliley, the House Committee on Commerce, and all other interested 
parties as Congress moves forward with its comprehensive examination of 
the industry. But it must be noted that we can take an important step 
toward the laudable end with the timely and sagacious elimination of 
PURPA's unnecessary and costly Federal mandate.
  Everyone will agree that we must begin to explore a move toward an 
electricity industry that is based on competition, market force, and 
lower prices for ratepayers. This is certainly my objective as I 
introduce this imperative aspect of electricity reform legislation.

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