The odds of Congress passing electric restructuring legislationduring this session were reduced to next to nothing as the HouseCommerce Committee — which has been beset by infighting —postponed the long-awaited mark-up that was scheduled for lastweek. The committee could give “no firm date” for when it would berescheduled.

With this delay and the holdup in the Senate, the likelihood ofboth chambers passing a bill during the 106th Congress andforwarding it to President Clinton for his signature is “less than10%,” said a Capitol Hill observer. “It’s very unlikely there willbe a Rose Garden [signing] ceremony” this year. The best thisCongress, which plans to adjourn in early October, can do is puttogether a proposal that would enable the 107th Congress to movequickly on electricity restructuring, he said.

House Commerce Chairman Thomas J. Bliley (R-VA) has drawn thewrath of his committee colleagues by failing to negotiate therestructuring issues. “He’s kind of been like [Moses] bringing downthe tablets” with respect to the electricity bill, the observernoted. “He’s told the committee members ‘this is what you’re goingto do or else.’ The committee members are balking. You can’t ordermembers of Congress to just obey you.”

There’s “serious disagreement” between Bliley and members of theEnergy and Power Subcommittee on the issue of the extent of FERCjurisdiction over electric transmission. Bliley floated a proposalrecently that would give the Commission almost carte blancheauthority over the entire interstate transmission grid (bundled andunbundled service), but subcommittee members aren’t willing to goto that extreme.

In a speech in St. Louis, MO, last week, FERC Chairman JamesHoecker called the congressional debate over who should havejurisdiction over bundled and/or unbundled transmission a”troubling side show that saps out energies and diverts ourattention away” from the important issues.

Nevertheless, “…..I still think that the FERC will only beable to promote real competition to the extent that all uses of thegrid and all transmission facilities are subject to the samenon-discriminatory rules,” he told Mid-America RegulatoryCommissioners at their annual meeting.

“Many state regulators view the restructuring bills beingdebated on [Capitol] Hill — especially those which give the FERCjurisdiction over all transmission, authority to correct marketpower abuses and order RTOs, and greater reliabilityresponsibilities — as intrusive and contrary to state interests.That is both an unfortunate and an inaccurate characterization,”Hoecker noted. “Under virtually every scenario I can imagine,states will retain jurisdiction over most of the industry, itsassets and its costs.”

As for restructuring legislation, he believes the chances of abill this year are “still slim,” but he added that he senses a”degree of focus and understanding” that wasn’t present previouslyin the debate.

In the House, “it would be a serious mistake for Bliley to bringup the bill now. Bliley would get rolled.”

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