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Enron Mail |
Could tank the whole US economy!
DJ Greenspan Cites Concern About Electric Sector Investment Dow Jones International News Service -- July 20, 2000 [Return to Headlines] WASHINGTON (Dow Jones)--Federal Reserve Board Chairman Alan Greenspan told Congress Thursday he is concerned that disincentives for investment in the electricity sector will destabilize the overall U.S. economy. "The propensity to build new electric power facilities is being disincentivized," Greenspan said. "I'm worried about the instability that that creates within the economy and the difficulties that might emerge as a consequence of that," the Fed chairman said in response to a query by Sen. Charles Schumer, D-N.Y. "It is an issue we need to address," Greenspan said. U.S. utilities have failed to make needed investments in generation plants and transmission lines over the last decade in the face of regulatory uncertainty posed by state and federal deregulation efforts. Energy Secretary Bill Richardson has been touring the country in recent months, warning that the problem is contributing to power supply shortages in summer months, when hot weather sends electricity demand - and prices - soaring. Richardson says Congress needs to enact a comprehensive bill restructuring the $215 billion electric industry to end the uncertainty and give the sector renewed incentive to make needed investments. By Bryan Lee;Dow Jones Newswires;202-862-6647, bryan.lee@dowjones.com (END) Dow Jones Newswires 20-07-00 1948GMT Kim S. Martin Vice President Fleishman-Hillard Inc. 1615 L Street NW, Suite 1000 Washington, DC 20036 (202) 828-8827 fax:(202) 293-8105 martinki@fleishman.com
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