Statement of Matt Freedman on the Blueprint

[Matt Freedman <freedman@citizen.org>]

  The following statement was issued by Matthew Freedman, Energy Policy 
  Analyst with Public Citizen, on the release of POWER FOR THE PEOPLE: A 
  PUBLIC INTEREST BLUEPRINT FOR ELECTRICITY RESTRUCTURING
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  The arrival of competition in the electric industry still lies 
  ahead.  Though many states have begun the march to restructure their 
  utilities and introduce competition, vertically-integrated monopolies 
  continue to dominate the generation, transmission and distribution of 
  electricity.  Efforts to change this system will fundamentally alter our 
  national energy policy and offer the promise of cleaner, cheaper and 
  universally accessible power if the intent of this process is to further 
  the public interest.  Equally possible is another scenario -- higher bills 
  for small consumers, the increased use of extremely polluting energy 
  sources, the consolidation of market power in fewer corporate entities, 
  degraded service quality, discrimination against low-income and rural 
  consumers, and unprecedented bailouts of high-cost utilities on the backs 
  of powerless residential ratepayers.
  
          Today, our coalition releases a blueprint outlining a vision for 
  competition that puts consumers and the environment first.  Our plan would 
  make sustainable and affordable energy a priority by ensuring the increased 
  use of renewable energy and efficiency technologies, guaranteed universal 
  service, and vigorous consumer protection.  The specific mechanisms in our 
  proposal represent an approach that couples market forces with minimum 
  standards.  By making all companies adhere to the same requirements for 
  serving the public interest, no single player or industry is disadvantaged 
  and consumers can reap the benefits of competitive markets.
  
          We also reject the notion that inefficient, high-cost utilities 
  should be compensated for their imprudent decisions to invest heavily in 
  nuclear power.  When citizens rebelled against the construction of nuclear 
  power stations in the 1970s and 1980s, utilities claimed that these plants 
  would be inexpensive and needed to meet the vast increase in electricity 
  demand projected by their own forecasters.  When increased demand failed to 
  materialize and costs skyrocketed, consumers ended up buying power from 
  many overpriced, dangerous and unnecessary boondoggles.  Today, we are 
  calling for the utilities that forced these plants on reluctant ratepayers 
  to take financial responsibility for their bad business decisions.  If 
  utilities are granted full recovery of these costs, it could represent one 
  of the largest public bailouts of a private industry in history.  
  Furthermore, it would preclude many small consumers from realizing any 
  economic benefits from competition.
  
          Powerful interests are hard at work to influence the outcome of 
  this debate.  Industrial consumers, electric utilities and independent 
  generators all have a huge stake in the rules adopted by states and the 
  federal government.  Though these interests talk about the benefits likely 
  to accrue to average consumers, they assume that the free market alone will 
  help all consumers equally.  
  
          In any new system, there will be winners and losers.  If the public 
  is to benefit from competition, then their interests must be paramount in 
  determining which policy choices will prevail.  By placing their concerns 
  first, state and federal policymakers have a chance to create a new system 
  that works for consumers and the environment.  The blueprint we release 
  today would move our nation towards this goal by promoting fair and free 
  competition and a more sustainable energy future.
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