[Congressional Record Volume 144, Number 15 (Wednesday, February 25, 1998)]
[Extensions of Remarks]
[Page E220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        ON ELECTRIC DEREGULATION

                                 ______
                                 

                        HON. DENNIS J. KUCINICH

                                of ohio

                    in the house of representatives

                      Wednesday, February 25, 1998

  Mr. KUCINICH. Mr. Speaker, I would like to bring to the attention of 
my colleagues working on and thinking about electric deregulation 
(``retail wheeling'') the remarks of Anthony J. Alexander, Executive 
Vice-President & General Counsel of Ohio Edison Company, which he 
delivered to members of Local 245, International Brotherhood of 
Electrical Workers (IBEW). There is much to be learned from the candid 
revelations of this leader in the electric power industry.

       Contrary to what you've heard from supporters of retail 
     wheeling, this issue isn't about rate cuts--because there's 
     no guarantee on rates. In fact, they could go up for many 
     Ohioans. And, in any event, from a global competitiveness 
     standpoint, we already have electric rates that are lower 
     than those of most industrialized countries in the world.
       It's not about efficiency--we already have the most 
     efficient and reliable system in the world. In fact, many of 
     our energy-efficiency programs, especially for low income 
     customers, could be lost under the new system.
       And it's not about fairness--because only a few, privileged 
     customers and suppliers may profit from retail wheeling. And, 
     it's likely to lead to many differences in prices, which 
     today we'd call discrimination.
       Let's not be naive: This issue is all about money--and lots 
     of it. There's a lot of money on the table--not only for 
     those who believe that retail wheeling will allow them to 
     negotiate more favored prices, but also for the speculators 
     in futures, options, hedges and derivatives. Wall Street and 
     others are driving this issue not for the sake of free 
     markets, but to gain access to profits.
       After all, this change involves one of the nation's 
     largest, and most capital-intensive, industries-as well as 
     thousands of people, just like members of Local 245, who work 
     hard every day to deliver high-quality service to customers.
       Make no mistake about this point: For supporters of retail 
     wheeling, it's all about them getting more . . . and quite 
     frankly, us getting less. And when I say us, I don't just 
     mean utility employees. I'm also talking about senior 
     citizens, small business owners, customers on low incomes, 
     working families--including those headed by single parents . 
     . . in other words, the vast majority of people who probably 
     won't have suppliers competing for their business.
       Other key issues are reliability and convenience. Under the 
     existing system, utilities are obligated to serve all 
     customers--the unprofitable as well as the profitable. By 
     effectively eliminating the basic obligation, the reserve 
     margins generated by today's power plants--as well as the 
     thousands of utility jobs associated with those margins--
     simply wouldn't exist. Why? Because under retail wheeling, 
     generation that is held in reserve to assure reliability 
     would no longer be mandated. No one would build expensive new 
     power plants or maintain reserves or any other inventories 
     simply to assure reliable and adequate supply.
       Rather than a service, electricity would become a market-
     drive commodity in which price and profit are the only 
     concerns.
       Reliability is a serious issue in any deregulated industry. 
     But considering the essential role electricity plays in every 
     home and business, unreliable electric service is a much 
     bigger problem than a busy signal or a canceled flight.
       This is a complicated issue, because the electric business 
     is far different from other industries that have been 
     deregulated. At the same time, supporters of retail wheeling 
     are trying to mask the real impact of transforming electric 
     service into just another product for which there's no 
     substitute--and, no other product or service just like it.
       Remember, choice goes both ways--customers can choose their 
     suppliers, and suppliers can choose their customers. If 
     lawmakers decide that our industry must be deregulated, then 
     they should take the time to do it right the first time--
     because the stakes are too high to do otherwise.

     

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