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EEI President Tom Kuhn Urges Swift Action On Comprehensive Energy Legislation
2/10/2005
Washington, DC - Declaring that the nation “needs an energy bill now more than ever,” Edison Electric Institute President Tom Kuhn today urged House lawmakers to expedite passage of comprehensive national energy legislation in the new Congress.
Testifying before the House Energy & Commerce Subcommittee on Energy and Air Quality, Kuhn thanked the panel for its years of effort to address the nation’s long-term energy needs, and he underscored the urgency of the task ahead.
“While we continue to talk about energy issues, high energy prices continue to be a heavy burden on American consumers and businesses,” Kuhn said. “The most important thing now is for Congress to move forward and finish the job as soon as possible.”
Declaring that a reliable electric system is a cornerstone of this nation’s economy, Kuhn renewed EEI’s support for provisions in the proposed legislation that will help reinforce reliability and provide incentives for investment in much-needed transmission infrastructure. These include mandatory, enforceable reliability standards, along with limited backstop siting authority for the Federal Energy Regulatory Commission to help site new transmission lines in interstate congested areas.
Other key reliability provisions include streamlined siting and permitting coordination on federal lands, reformed FERC transmission rate policies, and repeal of the Public Utility Holding Company Act, which acts as a barrier to investment in the industry, Kuhn said.
"This is a crucial time for our country’s electric power grid, and we commend lawmakers for their efforts to equip regulators and policymakers alike with the tools needed to bolster system reliability while meeting the nation’s growing demand for electricity,” Kuhn told the subcommittee.
Citing data from the U.S. Energy Information Administration, Kuhn also reminded lawmakers that U.S. demand for electricity likely will grow by roughly 50 percent over the next 20 years. “To meet this increase in demand while assuring system reliability and developing robust wholesale electricity markets, we must increase capital investments in upgrades and new transmission lines—especially high-voltage, long-distance lines—from the current level of roughly $4 billion annually to about $5 billion,” he said.
Noting the critically important role fuel diversity plays in America’s national energy policy, the EEI president praised committee members for promoting the full range of electricity generation options. “Having a broad array of fuel resource options available – including coal,
nuclear, natural gas, hydro, and renewables – is an important hedge against supply disruptions and price volatility,” Kuhn said. “Preserving fuel diversity benefits consumers, the economy and the environment.”
Turning to the industry structure arena, Kuhn reiterated EEI’s views that all transmission-owning utilities, no matter what their ownership type, should be subject to the same level of FERC regulation to assure fair, open access for all market participants to the transmission grid. Noting that electrons move freely on the grid according to the laws of physics, without recognizing changes in ownership, Kuhn stated that “FERC rules should apply to all users of the grid.”
Another federal statute in need of reform is the Public Utility Regulatory Policies Act, whose mandatory purchase obligation has subjected consumers to higher electricity prices for many years, the EEI executive said.
Kuhn also singled out several tax provisions in last year’s conference report that provide for accelerated depreciation for electric transmission assets, amortization for certain pollution control equipment, clarification of the production tax credit to help promote renewables, and updating the tax treatment of nuclear decommissioning.
“While not within the jurisdiction of the Energy and Commerce Committee, EEI strongly supports these provisions as they will help increase investment in, and strengthen, our energy infrastructure,” he said.
Source: Edison Electric Institute (EEI
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