A major interstate pipeline group has called on the Senate to”move early in the new year” on comprehensive legislation torestructure the electricity industry, and to mirror it after thereforms in the natural gas industry.

The Interstate Natural Gas Association of America (INGAA) andits members “have a great deal of experience with industryrestructuring, as we have been through it over the last 15 years.There is general consensus that interstate pipelines have becomemore competitive and customer-focused as a result,” wrote INGAAPresident Jerald V. Halvorsen in a Dec. 21 letter to Chairman FrankMurkowski of the Senate Energy and Natural Resources Committee.

“Having one clear set of rules for natural gas transmission atthe national level was a crucial component to implementing thesechanges – changes that have resulted in lower prices, new servicesand better reliability for all classes of natural gas customers,”he said.

“We believe that the same types of standards should apply toelectric transmission facilities ….. To move to a nationalelectric transmission grid, it is important to include under FERCauthority those transmission facilities that are owned by co-ops,municipal utilities and power marketing administrations, which yourdraft does. It is also necessary to clarify which wires aretransmission and which are distribution.”

INGAA believes the Senate Energy Committee’s electricity billshould include features such as non-discriminatory service, openaccess and unbundled transmission – which were central torestructuring the gas industry. The legislation should clearlydelineate between the functions of the state and federal governmentin a restructured power market, Halvorsen said.

“States would still retain authority over rebundled electricitysold to the ultimate consumer, while FERC should be given authorityover the entire transmission grid.”

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