Enron Mail

From:jennifer.thome@enron.com
To:richard.shapiro@enron.com, d..steffes@enron.com, janel.guerrero@enron.com,l..nicolay@enron.com, linda.robertson@enron.com, sarah.novosel@enron.com
Subject:Bingaman letter - electricity legislation
Cc:john.shelk@enron.com, tom.briggs@enron.com, sue.nord@enron.com,a..hueter@enron.com, paul.kaufman@enron.com
Bcc:john.shelk@enron.com, tom.briggs@enron.com, sue.nord@enron.com,a..hueter@enron.com, paul.kaufman@enron.com
Date:Fri, 14 Sep 2001 07:09:14 -0700 (PDT)

=20
Below please find the letter sent to Senator Bingaman from a number of stat=
es rights stakeholders describing concerns about the Senator's proposed leg=
islation. =20
[This letter can also be found at the following link: <http://www.nga.org/n=
ga/legislativeUpdate/1,1169,C_LETTER<D_2539,00.html]? ? ? ? <http://www.ng=
a.org/cda/images/NGALOGOBW.GIF<?? ??September 13, 2001 ??The Honorable Jef=
f Bingaman?Chairman?Energy and Natural Resources Committee?SD-364 Dirksen S=
enate Office Building?Washington, 20510-6150??RE: Electricity Legislation ?=
?Dear Chairman Bingaman:??The undersigned groups representing state and loc=
al governments would like to begin a dialogue with you to discuss creative =
measures for responding to electricity restructuring issues.??As you know, =
the National Governors Association passed the attached policy at their Annu=
al Meeting in Rhode Island earlier this month. The National Governors Assoc=
iation (NGA) policy reaffirms the Governors' opposition to a legislative pr=
oposal which would establish federal eminent domain authority over electric=
ity transmission facilities. The Governors also agreed to establish a task =
force to provide a forum for states, the private sector, and the Administra=
tion to examine and discuss ways to ease bottlenecks in the transmission an=
d energy infrastructure system. Late last year, the National Conference of =
State Legislatures (NCSL) updated its National Energy Policy which was form=
ally adopted August 15 at its Annual Meeting. This policy reinforces its op=
position to Federal preemption of state authority over electric facility si=
ting. Also at its Annual Meeting, NCSL adopted an Energy Regionalism policy=
that supports states working together to address siting and reliability co=
ncerns on a regional basis. In addition, by letter addressed to you dated J=
uly 23, 2001, the NCSL reiterated its strong opposition to federal eminent =
domain authority for electricity transmission lines. And in July 2001, the =
National Association of Counties (NACo) adopted a Resolution on National En=
ergy Policy outlining county officials' opposition to FERC eminent domain a=
uthority without the provision of specific requirements that strengthen the=
role of counties in planning for the siting of these lines. The report pre=
pared for the Western Governors Association entitled, "Conceptual Plans for=
Electricity Transmission in the West," also provides new avenues for devel=
opment of transmission facilities. Finally, as the attached "Electricity Po=
licy Principles" document, organizations representing virtually every organ=
ization of state and local officials affected by electricity restructuring =
have spoken with one voice that the regulation of rights of way necessary f=
or expanded utility infrastructure should remain with state and local gover=
nmental officials. In short, action is occurring at the state and regional =
level.??Before any decision is made regarding federal siting legislation (i=
ncluding eminent domain authority), it should first be established through =
an independent analysis or study that it is in fact the action, or inaction=
, of state and local governments that is preventing electric transmission l=
ines from being sited. Thus far only anecdotal information concerning these=
purported siting barriers has been conveyed to the Congress and the Admini=
stration - primarily by electric transmission companies and their trade org=
anizations.??With this in mind, the NGA - Center for Best Practices has est=
ablished an Energy Task Force that, in collaboration with other state and l=
ocal organizations, will review and make recommendations about siting issue=
s, along with electricity generation and regional market issues. We ask tha=
t you give deference to this Task Force and its recommendations before movi=
ng forward with any legislative mandates or preemptive language in a legisl=
ative proposal.??Sections 201 and 202 of S. 597 offer both a policy on regi=
onal coordination and federal support for such efforts. This is a good star=
t, worthy of serious consideration and analysis by the Congress. However, f=
ederal preemption is a draconian step completely inconsistent with reasonab=
le views of federalism and energy policy. In fact, many view the problems t=
hat have developed in restructuring as primarily failings at the federal le=
vel. Enhanced federal authority in that situation may well be counterproduc=
tive.??Additionally, certain proposals contained in your September 6 draft =
legislation on electricity issues would unreasonably constrain state effort=
s to address electricity restructuring by increasing federal authority. The=
proposals for enhanced federal jurisdiction over both bundled and unbundle=
d transmission services, a legislative mandate to participate in RTOs, emin=
ent domain authority for FERC, along with several other provisions pre-empt=
ing State and local authority, limit the important adjudicatory and regulat=
ory role of State commissions, Governors, legislators and local elected off=
icials.??In short, we hope to work with you and the Committee to develop re=
asonable legislative proposals that recognize the unique role of state and =
local government. We want to work with you to help solve problems, not crea=
te new ones. In that light, we would propose a meeting between state and lo=
cal representatives and you and your staff as soon as possible. We look for=
ward to meeting at your earliest convenience, prior to mark up of the elect=
ricity title of your legislation.??Thank you for your time and consideratio=
n in this important matter.??Sincerely,??National Governors Association?Nat=
ional Conference of State Legislatures?National Association of Counties?Nat=
ional Association of Towns and Townships?National Association of State Ener=
gy Officials?National Association of Regulatory Utility Commissioners?Natio=
nal Association of State Utility Consumer Advocates?Association of State En=
ergy Research and Technology Transfer Institutions?Council of State Governm=
ents??Cc: All Members of the Senate Energy and Natural Resources Committee