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Restructuring Today readers got this story today...
Retail market can be opened nationally? --- Joe Barton thinks it can and is about to try --- Once in 20 years opportunity seen How can the retail power market be opened in today's atmosphere? Joe Barton has a way and it sounds like it just might work. He briefed APPA members winding up the last day of the annual meeting in Washington. Barton implored the membership that if they have any ideas on how to improve energy policy, this is the time to tell policy makers or him. Barton sees a narrow, six-week opportunity as America is about to revise its energy policy. We walked with him to his car after the speech and asked what he means by a major energy restructuring bill. He referred vaguely to legislation that would improve the grid and foster the functioning of a robust market providing for movement of power from one place to another. He wants a national market with a grid that can handle it "in an open access way -- creating all these trading markets where you have long-term and short-term markets where you balance supply and demand around the country. "States that have surplus power, through the RTO system can wheel that power to states that need it." That's the wholesale market, we asked. Yes. But what about retail? He hopes to get into the law a provision to foster aggregation of buyers. How would that work? "AARP," Barton said noticing our age, "could sell you power or Wal- Mart or McDonalds or the co-ops. You could buy your power through them." How would a law provide for aggregation? "It would be in the federal legislation that it would be permitted," he replied. But what about Nebraska where there are only munis? "You've got to work through that and see if you get some kind of grandfather or state opt-out provision. It's possible that you give states the right to opt out. But over time those states will want to opt in," he added. "That'll be a debate we'll have when we get into the bill. You're not supposed to ask that tough a question this early in the process," he reminded with a smile. Barton is really impressed with the magnitude of the legislation gestating in the nation's capital. "Everything" is up for discussion, he said, "everything. "There is nothing -- nothing -- that's been debated or talked about in terms of electricity that is not on the table," Barton assured. "I'm not saying we're going to do it all but you have a window like this once every 20 to 30 years. I'm going to be damned if I'm going to stand around and on my on volition take things off the table. "Now the process will automatically take a lot more controversial items out of play. There'll be a region or a political block -- who knows the president might not like something. John Dingell might not like something. Who knows? But I'm not -- even before we put pen to paper to start drafting the bill -- say `we're not going to consider this'," Barton added. Is he getting signals from Dingell that he might be cooperative? "Yeah. Very cooperative. Of course, again, the proof is in the pudding and in the details." Barton's in the leadership role in fostering a national energy policy, taking the package from the vice president and guiding it through the House. He's the president's energy guy from an energy state and Bush has shown -- with the tax bill -- that he can get a program enacted. Barton wants something he can look back at in five, 10 and 20 years and say "that's a good bill. It works." Barton wants to make history with the Energy Policy Act of 2001. Barton told APPA he wants this big bill to be "national, long-term in its impact and balanced." Balanced means looking at the generation component, transmission and distribution "and in each of those areas -- this is just me. I'm not speaking for anyone but myself" -- he wants "to create an environment so we have a maximum, competitive situation that's open and fair to everybody. "And we're going to do that and you're going to have a lot of competition, a lot of flexibility with a lot of choice for consumers and a lot of choice for yourself," Barton added. Wait a minute. He's saying competition in transmission and distribution. We really do need to ask him what he has in mind there when the time is right. We can't help but think of competition in selling pipeline capacity in a secondary market. You can do that with electricity capacity to or on a local distribution system in gas. We're thinking aloud here. That's not what Barton said. He wants to minimize the federal role except where you actually have to. That puts Barton "a little at variance with some in the Bush Administration and some in the Congress because in the modern age there's a natural proclivity to centralize and consolidate which in the political arena means let Washington do it." Barton wants to maximize the technology component and will put into the bill a distributed generation component. He's interested in negawatts, fostering cut backs in demand on a national scale. "Looking out for your own interest," Barton considers to be "democracy." But from time to time you have to step back and look at the national interest, he advocated. "That's my job." Today's crisis mentality helps Congress act boldly. The friendliness to competitive markets in the White House encouraged by the president's pride about the retail bill he got through the Texas Legislature plus today's environment may be ideal for market- minded leaders. You can benefit from Restructuring Today's special, unique focus on the converging energy and communications industries, especially the opening of competitive markets, too. To subscribe simply fax the attached order form to 202-298-8210. Don't miss another vital issue. Subscribe today! Thank you, Season Hawksley US Publishing 800-486-8201 202-298-8201 PS -- Please do not hit 'reply'. To subscribe, cancel, change your email address or ask questions please contact customercare@restructuringtoday.com. - orderform.pdf
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