Seven key electric utilities and marketers proposed five”consensus recommendations” aimed at helping the House CommerceCommittee move comprehensive restructuring legislation forwardduring this Congress.

“Our group has produced proposals that we believe will helpassure the reliability of the nation’s electric system as thecompetitive market continues to evolve, [as well as] recognize thatan efficient and non-discriminatory transmission system isessential for reliable service and development of an effectivemarket,” wrote Dominion Resources, Dynegy Inc. MidAmerican Energy,PG&E Corp., TECO Energy, UtiliCorp and Wisconsin Electric in aletter to Committee Chairman Thomas J. Bliley Jr. Wednesday.

The group recommended that the committee clarify in itslegislation that FERC has authority over all transmission service,both bundled and unbundled. It further proposed that alltransmission providers be placed under FERC jurisdiction. “Thiswould promote the orderly and non-discriminatory development of thewholesale market by ensuring that public, private and cooperativesystems are subject to uniform rules and conditions.”

The power companies suggested that states – both those that havemoved to implement retail competition and those that have not – aswell as utilities be afforded a period of time to accommodate tothe new regulatory system.

Moreover, they called for the House legislation to assure FERCoversight over regional transmission organizations (RTOs).Specifically, the bill should affirm the work that FERC has alreadyundertaken on these organizations and confirm the Commission’sauthority to mandate participation in an RTO as a remedy for unduediscrimination. “RTOs will help ensure both the reliability of thegrid and the development of workable and effective markets,” theytold Bliley.

Lastly, they asked that any legislation include reliabilityprovisions that recognize the role states can play in assuring theorderly and efficient operation of the nation’s electrical system.”We also note that the reliability titles of most bills before theHouse and Senate were developed by the North American ElectricReliability Council, and that NERC is continuing its study of theissue. This continuing work should provide reliability solutionscompatible with an open and competitive marketplace.”

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