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* from Reg Affairs
House backs 15-month delay in electric deregulation law By CHARLES E. BEGGS Associated Press Writer May. 24, 2001 Associated Press Newswires Copyright 2001. The Associated Press. All Rights Reserved. SALEM, Ore. (AP) - The Legislature on Thursday took its biggest step so far toward delaying partial deregulation of business electricity rates when the House voted for an 18-month postponement. A bill passed by a 48-11 vote would put off from Oct. 1 to at least March 31, 2003, the effective date of a law allowing the large business customers to buy power on the open market. The bill goes to the Senate, where some changes are expected. The law, passed in 1999, doesn't change regulation of electricity rates for homes and small businesses The law would permit largest business and industrial customers of Portland General Electric and PacifiCorp, the state's two largest privately owned electric utilities, to seek electricity on open markets. Backers of the delay say California's failed deregulation plan and uncertain hydropower supplies because of the Northwest's drought, likely leading to rising power prices, argue for postponing the change. "This gives us a better chance to look at where Oregon is going," said Rep. Rob Patridge, R-Medford. "There are many uncertainties" about the Oregon law, he said. An 18-month delay would put the issue back before lawmakers in their next session, which would begin in January 2003. House Speaker Mark Simmons, R-Elgin, said he expects the Senate will push for a shorter deferral. Foes of the bill claimed it will not hold down rates and will only make the situation worse. Rep. Bill Witt, R-Portland, said the problem is a lack of power supply to meet growing demand and that the measure "chills investment in new capacity. "We are sending a clear signal that you can't do business in Oregon" because the rules are uncertain, he said. Witt said the deregulation law was well crafted and doesn't contain the flaws that contributed to California's problems such as requirements forcing utilities to sell off generating plants. However, Rep. Robert Ackerman, D-Eugene, said the chaotic power market has created fear among businesses, nonetheless, and that some estimate they would face fourfold power increases in an unregulated market. Delay supporters said lawmakers are taking steps to stimulate more power production including passing a bill to streamline siting of temporary generating plants, which Gov. John Kitzhaber has signed.
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