Although the much-touted electricity restructuring billintroduced by Reps. Steve Largent (R-OK) and Edward Markey (D-MA)would slash the renewable portfolio mandate proposed by the Clintonadministration by more than half, natural gas producers stillaren’t quite satisfied.

While major producers “would certainly endorse” the overallbipartisan Largent-Markey package, they remain opposed to any kindof mandate that would give one fuel an advantage over another – nomatter how low the percentage, said John Sharp, NGSA’s vicepresident of federal and state affairs and counsel.

The legislation calls for the Energy Information Administration(EIA) to assess the non-hydroelectric renewables’ share of thepower generation market in January 2005. If it’s lower than 3%,then the bill would require the agency to set a standard of atleast 3% of total generation for renewables – wind, solar, biomassor geothermal. This compares to the Clinton proposal that wouldboost the renewables’ market share, on a phased-in basis, to 7.5%in 2015.

Sharp noted the Largent-Markey renewable provision is a “mandatedoing nothing,” given that renewables’ share of the powergeneration market currently is about 3%. Still, NGSA opposes itsimply because it is a mandate.

“I don’t think we need to talk about renewables” in electricityrestructuring legislation at all, said Sharp. “There’s no need tomandate a ceiling or a floor for any fuel. I don’t think Congressshould be in the business of dictating what kind of fuel to use,”he told Daily GPI. Even if lawmakers were proposing a mandate fornatural gas, “we’d probably oppose it – believe it or not.”

And he thinks many key energy lawmakers share this view. “Basedon what I heard from congressmen at [a recent] hearing, I think arenewable portfolio mandate is going to have a very difficult timestaying in the bill. My sense is that the majority of people on the[House] Energy and Power Subcommittee do not endorse a fuelmandate.”

But apart from the mandate provision, Sharp – like many others,including Energy Secretary Bill Richardson – had high praise forthe Largent-Markey bill. “I think it’s a bill that would easily bethe markup bill for the Energy and Power Subcommittee. Thisinitiative is reflective of a great deal of consensus.”

Martin Edwards of the Interstate Natural Gas Association ofAmerica (INGAA) didn’t go as far as to call the legislation amarkup bill, but “I think it should be taken seriously.” He thinksthe measure has potential. “It’s good to have a bipartisan bill ofthat nature out their in the public forum. It builds on a lot ofwhat the administration has [proposed].”

Sharp particularly liked the provision that would grandfatherstates, which enact retail-choice legislation by January 2001, fromfederal restructuring legislation. He believes the provision is anessential ingredient to restructuring. The Clinton administrationmeasure doesn’t include a grandfathering provision.

The Largent-Markey bill would require regulated andnon-regulated utilities to offer retail choice to consumers by Jan.1, 2002. However, it would allow states and non-regulated utilitiesto “opt out” if they find, after notice and hearing, that retailcompetition will have a “negative impact upon a class of customersthat cannot reasonably be mitigated.”

Other key provisions in the bill would: give FERC authority tooversee the creation of regional transmission organizations; awardstates authority over stranded-cost recovery; give FERC theauthority to approve and form a reliability group; exempt holdingcompanies from the Public Utility Holding Company Act, with theexception of those serving two or more states that are closed toretail competition; repeal the Public Utility Regulatory PoliciesAct; place the Tennessee Valley Authority’s transmission underCommission jurisdiction; subject Bonneville Power Administration toFERC authority; provide for retail reciprocity between states; andoffer consumers protection against “slamming” and other illegalacts.

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