[Congressional Record Volume 147, Number 104 (Tuesday, July 24, 2001)]
[Senate]
[Pages S8133-S8135]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself and Mr. Burns):
  S. 1231. A bill to amend the Federal Power Act to establish a system 
for market participants, regulators, and the public to have access to 
certain information about the operation of electricity power markets 
and transmission systems; to the Committee on Energy and Natural 
Resources.
  Mr. WYDEN. Mr. President, it is time to lift the veil of secrecy 
around energy markets in this country.
  Now that electric power is being traded as a commodity, with 
electricity bought and sold in markets all across the country, basic 
information about things like transmission capability and outages must 
be made available to the public. This information is crucial both for 
the markets to function efficiently and for the public to have 
confidence in these markets. But, unlike other commodities, it is often 
difficult to get basic information about how electric power systems and 
markets work. Information about the supply, demand and transmission of 
electricity around the country is simply unavailable in many areas of 
the country to State regulators and the general public.
  The electric power industry has not made this information available, 
and without Congressional action, Americans will continue to be kept in 
the dark about information they need to make informed choices and which 
will enable energy markets to work in a fair way.
  Today, along with Senator Burns, I am introducing the Electricity 
Information, Disclosure, Efficiency, and Accountability Act to open up 
access to operating information so that the markets can operate more 
efficiently, which can ultimately provide lower prices for consumers.
  Our legislation will create a standard system to provide market 
participants,

[[Page S8134]]

regulators and the public with access to key operational information 
about wholesale electric transmission systems and power markets. The 
bill requires operators of wholesale electric transmission and other 
bulk power systems to provide all system users with basic operating 
information, including all transmission line and generation facility 
data used to determine capacity or restraints on a transmission line 
and the supply and demand for electricity. Power system operators 
already have access to this information as part of their routine 
operation of bulk power systems. So there should be no additional 
burden on power generators to disclose information beyond what they are 
already providing to their system operators.
  In general, the bill would require operating information to be 
released on a real-time basis, updated hourly. This would ensure that 
market participants can keep current with changing conditions 
throughout the day that impact market decisions. This release of real-
time data will also ensure there is a level playing field for all users 
of the transmission grid and prevent some users from gaining a 
competitive advantage by access to non-public information.
  At the same time, the bill also creates a mechanism for keeping 
commercially sensitive information confidential or delaying disclosure 
of information that could be used to manipulate markets. Our 
legislation gives the Federal Energy Regulatory Commission authority to 
decide what data is considered commercially sensitive and either should 
not be publicly disclosed or should only be disclosed when the data is 
no longer commercially sensitive.
  In developing this legislation, we have worked with a broad range of 
stakeholders including market participants, regulators and consumer 
groups. The supporters include Enron, the largest electric power 
marketer in the U.S. today, the National Association of Regulatory 
Utility Commissioners, NARUC, and the Consumer Federation of America.
  The bill we are introducing today will lift the veil of secrecy now 
shrouding the operations of electric power systems around the country. 
It will improve access to critical information about how electric power 
systems and markets work while fully protecting commercially sensitive 
data. By improving access to information, market participants will be 
better informed when they make the thousands of decisions that must be 
made every day about how electricity is generated to customers across 
the country. Better access to information will enable regulators to 
take appropriate steps to ensure our electric power systems are 
reliable and that markets are functioning properly. Ultimately, by 
creating more efficient systems and markets, electricity customers 
throughout the country will be better served.
  I urge my colleagues to support the Electricity Information, 
Disclosure, Efficiency, and Accountability Act.
  I ask unanimous consent that letters of support written by NARUC and 
the Consumer Federation of America be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:
         National Association of Regulatory Utility Commissioners,
                                    Washington, DC, July 24, 2001.
     Senator Ron Wyden,
     U.S. Senate,
     Washington, DC.
       Dear Senator Wyden: Thank you for leadership in sponsoring 
     legislation to address the data access difficulties 
     confronting State Public Utility Commissions. Additionally, 
     the National Association of Regulatory Utility Commissioners 
     (NARUC) would like to thank you for working with NARUC 
     members and staff to include in your draft legislation our 
     recommendations on the types of information necessary to 
     adequately monitor wholesale electricity markets and to 
     assure proper access to such information. NARUC supports the 
     draft legislation you are sponsoring regarding electricity 
     information disclosure.
       Many regional electric markets throughout the country have 
     experienced price spikes of unusual and unexpected 
     proportions. These price spikes have led to curtailment or 
     shutdown of operations of some large industrial customers and 
     to increased prices for smaller commercial and residential 
     customers.
       The high market price volatility has raised concerns about 
     the integrity of the markets, leading to calls from numerous 
     participants, consumers and policy makers for heightened 
     monitoring of these markets by regulatory bodies. In order to 
     identify corrective policy options to assure the public of 
     the competitiveness and efficiency of the developing 
     wholesale electricity market and its prices, regulatory 
     bodies need access to data such as production for generating 
     plants, transmission path schedules and actual flows.
       The electric industry restructuring efforts of the federal 
     government and the various states are based upon an 
     assumption that wholesale markets are workably competitive. 
     To that end, policy makers must have the ability to provide 
     confidence to an already skeptical and uneasy public that the 
     market is not being ``gamed.'' This confidence can only be 
     provided if regulators are able to access the data necessary 
     to ensure that the market is functioning in a truly 
     competitive fashion. To the extent data is currently shared 
     among market participants for purposes of reliability, it 
     should also be available to regulators and the public.
       In conclusion, I would like to thank you again for 
     considering NARUC's concerns and recommendations while you 
     drafted the ``Electricity Information, Disclosure, 
     Efficiency, and Accountability Act.'' NARUC would be pleased 
     to provide any additional assistance necessary to move this 
     legislation forward.
           Sincerely,
                                                   Charles D. Gray
     Executive Director.
                                  ____



                               Consumer Federation of America,

                                    Washington, DC, July 24, 2001.

     Re Support for Wyden/Burns Electricity Information, 
         Disclosure, Efficiency and Accountability Act.

     Hon. Ron Wyden,
     U.S. Senate, Washington, DC.
     Hon. Conrad Burns,
     U.S. Senate, Washington, DC.
       Dear Senators Wyden and Burns: The Consumer Federation of 
     America supports this legislation, which would require that 
     essential information about the functioning and reliability 
     of electricity markets be provided to the public, regulators 
     and market participants on a real-time basis. This would 
     include operating data used by wholesale system operators to 
     determine available electric capacity and bottlenecks and to 
     maintain reliability. Bid data would also have to be made 
     available, such as the price, amount and delivery location of 
     electricity that is purchased.
       In a series of studies over the last three years, the 
     Consumer Federation of America has documented in detail how 
     the flawed deregulation of electricity in a number of states 
     has led to extensive price spikes and brown outs for 
     consumers and huge windfalls for many energy producers. Among 
     the many steps that should be taken to fix this highly 
     dysfunctional market is the creation of functioning market 
     institutions and greater transparency. Market institutions 
     should be developed before, not after, the trading of 
     electricity begins so that trading is transparent and 
     disciplined by market forces. Undeveloped information and 
     trading mechanisms are prone to manipulation. As we've seen 
     in California over the last year, when abuse occurs under 
     such circumstances, consumers are vulnerable to price gouging 
     and the provision of unreliable electricity.
       Electricity markets have a multitude of complex 
     transactions. Unfortunately, good information about these 
     transactions is not generally available at crucial times, 
     such as periods of scarcity when wholesale electric prices 
     are being driven up very quickly. There is simply no 
     centralized, reliable source of information, particularly for 
     electric system operators. Moreover, the brokers who are the 
     sources of information--on bid prices, for instance--may well 
     have an interest in skewing it. Overall, a number of 
     information and management weaknesses exist, including 
     inadequate market forecasting tools, a lack of monitoring 
     instruments and little real-time information to respond to 
     market problems.
       This legislation addresses the lack of timely information 
     that exists about the rates, terms and conditions under which 
     wholesale electricity is being offered. It is an essential 
     step in making this nation's defective electricity markets 
     more competitive and more pro-consumer.
           Sincerely,
                                               Travis B. Plunkett,
                                             Legislative Director.

  Mr. BURNS. Mr. President, I am pleased to join Senator Wyden today 
with the introduction of the Electricity Information, Disclosure, 
Efficiency, and Accountability Act.
  Legislation dealing with market data for the wholesale electric power 
market is long overdue. The evolving wholesale electric power market is 
being hindered by the lack of data that power suppliers need in order 
to provide services to the market. Access to real time operational 
information leads to improved efficiencies of systems dispatch in the 
short term, which

[[Page S8135]]

leads to lower prices for consumers. The absence of reliable, real 
time, market data hinders the ability of energy suppliers to manage 
price and volume risk and also prevents efficient utilization of 
transmission and generation capacity. consequently, the increased costs 
associated with risks inherent in operating without reliable data are 
ultimately borne by consumers.
  As our Nation moves towards consumer choice it is important that this 
Congress takes action to direct the Federal Energy Regulatory 
Commission (FERC) to craft rules designed to promote transparency in 
energy markets. This bill that Senator Wyden and I have introduced will 
do just that.
  By incorporating a standard system that would provide market 
participants, regulators and the public access to certain operational 
information concerning power markets and the transmission systems that 
support them, this plan would keep participants abreast of the changing 
power operating conditions throughout the day that impact market 
decisions required to manage risk. The recent fluctuations in the 
Western energy markets have shown Montana and every State in the West 
that we cannot shelter ourselves from the power operating conditions in 
other States. With more access to that information, our local and State 
suppliers can have the information to better protect their consumers.
  This bill is backed by consumer groups, power marketers, and the 
national utility commissioners. It puts forward a framework that many 
of our colleagues can support. As the Senate continues to move closer 
to having movements on energy legislation, I would urge my colleagues 
to also support the Electricity Information, Disclosure, Efficiency, 
and Accountability Act.
                                 ______