Rep. Edward J. Markey (D-MA) released a letter this week fromFERC Chairman James J. Hoecker that is “sharply critical” ofelectric restructuring bill H.R. 2944, sponsored by Rep. Joe Barton(R-TX). The bill was reported out of the House Energy and PowerSubcommittee last November. Hoecker’s letter was a response to aNov. 3 inquiry by Markey.

“This analysis shows that the subcommittee-reported electricityrestructuring bill would be a disaster for competition andconsumers,” said Markey, who voted against the bill.

In his letter, Hoecker said that overall he believes the currentversion of the bill “represents an unfortunate retreat from thegoal of a competitive, efficient and transparent wholesale powermarket, a goal that would be much better served by adoption of H.R.2050 or H.R. 1828 (the Largent-Markey bill and the ClintonAdministration’s bill, respectively). In fact, H.R. 2944 moves in adirection that is contrary, not only to Commission policy, but toeconomic and operational developments in the marketplace itself.”

In a detailed analysis accompanying the letter, Hoecker providedalternative approaches to the provisions on market power, onregional transmission organizations, on certain grandfatheringactions and on its treatment of mergers. In almost every criticalarea, Hoecker said the bill would “move us in the wrong direction -locking in barriers to competition, balkanizing the markets andlocking in the monopoly power of the big utilities,” said Markey.”If we are going to have a real competition bill that Democrats cansupport and the President can sign, this bill will have to becompletely rewritten at the full committee level.”

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