In the first of a planned series of legislative hearings, Houselawmakers on the energy and power subcommittee acknowledgedyesterday that for the first time in a couple of years they werestarting to see a light at the end of tunnel on electricityrestructuring.

“We’re moving into the next phase, maybe not the last phase, buta very important phase with consideration of our electricitylegislation,” said Rep. Ralph M. Hall (D-TX), the ranking minoritymember of the Commerce Committee panel.

Although the subcommittee has had a number of hearings on theissue, “I think this is the first one [where] the witnesses havereally gotten down to the nitty gritty,” he told a packed hearingroom on Thursday.

Chairman Joe Barton (R-TX) called the hearing so subcommitteelawmakers could begin to sift through the eight electricityrestructuring bills introduced in the House so far, picking out thebest approaches from each. This would be followed by mark-up,possibly around the August recess. “I hope in the very near futureto have a comprehensive bill” on a bi-partisan basis, he said.

Conspicuously absent from the hearing was a measure thatCommerce Chairman Thomas J. Bliley (R-VA) and Barton are drafting.”What we have missing from us today is the one bill that’s yet toemerge-Mr. Bliley’s bill. We’re all anxious to see on this side[Democratic] that bill,” remarked Hall.

He commended Barton for “open[ing] the bill development anddrafting process” to all parties. “He brought in everyone from theadministration – [Energy Secretary] Bill Richardson and others [whoare] knowledgeable” on the issue. “I think your approach is thebest way to seek consensus” on electricity restructuringlegislation, he told Barton.

Also not included in the legislative review was a comprehensivebill introduced on Tuesday by Rep. Frank Pallone (D-NJ) that, amongother things, seeks to reduce power-plant emissions by using amarket-based approach. It also would establish a renewable energyportfolio standard of 7.5% by 2010, which the gas industry opposes.Separately, Rep. Sherrod Brown (D-OH) announced his intention tointroduce a new bill that would give local governments the optionto pursue “choice” on behalf of their communities.

Rep. Richard M. Burr (R-NC) said the final legislation voted outby the subcommittee may be a “mixture” of the eight bills reviewedat the hearing. Or, he offered, “it may in fact be a new documentthat we have yet to think about.” The subcommittee has a “wealth ofoptions to choose from,” he noted, but that “does not suggest thatwe automatically [will] get it right.” Burr said the panel wascounting on the energy industry and consumer groups to tell it”what it is that gets us to the right place.” The subcommittee’s”No. 1 interest is to get it right.”

He noted he had “one very big principle in this. That’s to seethat if we introduce a deregulation bill that it in factderegulates electricity.”

Rep. Steve Largent (R-OK), has been a key force in therestructuring effort in the House. Contrary to reports that theHouse has “stumbled” on this issue, he said lawmakers are”continuing to move forward with a lot of momentum” towards a finalcomprehensive measure. The subcommittee has come “down to the wirein our efforts to vote on a bill.”

It’s time “to roll up our sleeves and get to work,” agreed Rep.Charles Norwood (R-GA), who added that the hearings were”hopefully” coming to a close. The subcommittee doesn’t intend tolet staff “drop a bill in our lap” and then rubber stamp it.

Steven J. Kean of Enron Corp., speaking on behalf of ElectricPower Supply Association, told the subcommittee a federalrestructuring bill was needed that was both “comprehensive” inscope and “forceful.” He said two bills-the Largent-Rep. EdwardMarkey (D-MA) measure and the Clinton administration’s proposal-metthe “comprehensive” criteria. The final bill must be forceful, heexplained, because no monopoly “voluntarily surrenders itfranchise.”

He also urged the House panel to address problems associatedwith the transmission grid. He claimed the grid currently is”openly discriminatory, with perhaps [only] 15% of [it] open tocompetitive usage.” This prevents utility competitors fromsupplying cheaper power to states that have already opened up theirelectric markets. “Only Congress can fix the problem.” He believesFERC “must be directed and empowered to ensure non-discriminatoryaccess to the transmission [grid] for all usages and for allsystems, public and private.”

Kean also cited the need to upgrade the transmissioninfrastructure, which he said has proved to be difficult becauseit’s “almost impossible” to site new facilities today. He furthercalled for Congress to reform the organization in charge of gridreliability, making it “legitimate in its governance.”

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