Key pieces of comprehensive legislation aimed at restructuringthe electric industry could very well come out of both the Houseand the Senate before lawmakers leave for recess in early August,Capitol Hill observers say.

Top House Republicans – Majority Leader Richard Armey (T-TX),Majority Whip Tom DeLay (R-TX), Commerce Committee Chairman ThomasBliley (R-VA) and Rep. Joe Barton (R-TX) – are drafting arestructuring measure, which they hope to introduce in “the nextweek or so,” according to one industry source.

The House Republicans “aren’t sharing” any of the details oftheir proposal with Democratic colleagues, which “has caused atremendous amount of distrust,” he said. Democrats on the CommerceCommittee’s energy and power panel are especially concerned thatBliley is trying to turn electricity restructuring into a “partisanissue.”

Also, “I think DeLay and Armey are inclined to do things thatare more intrusive into the states” than what the Democrats wouldprefer, the source noted. That “puts into question quite a bit theissue of [federal] preemption” of states’ rights.

In the House, “we could seek a bill before the August recess.The question is whether the Democrats will agree to it or not. Itappears there’s a greater chance for partisan fighting in the Housethan the Senate” over this issue.

On the other side of Capitol Hill, Senate Energy CommitteeChairman Frank Murkowski (R-AK) reportedly is looking to draft hisown bill on electricity restructuring, then circulate it amongcommittee members and go straight to mark-up. He is trying toelicit the support of Sen. Jeff Bingaman (D-NM), the rankingDemocrat on the committee.

“The Senate has a very ambitious schedule. They want to markthis bill up before the August recess. But whether it will bereported out or not, I don’t know,” the observer said. The messagefrom both chambers is that “electricity restructuring is clearlybeginning to move.”

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