May 27, 1999

The House Agriculture Subcommittee on General Farm Commodities, Resource Conservation and Credit Wednesday took a look at electricity deregulation and its effects on agriculture and rural communities. They found some potential positive effects, but rural consumers already enjoy low cost power, implying that deregulation probably wouldn't bring those costs down further.

"It's quite possible that electric restructuring in some form could have a positive effect on utilities and some of their customers in certain areas and industries," said Rep. Bill Barrett (R-NE), subcommittee chairman. "However, in Nebraska, both rural consumers and industry enjoy low cost power, and I fail to see how the Clinton Administration plan could improve our system."

House Commerce Committee Chairman Tom Bliley (R-VA) introduced the administration's proposal last week. It includes a federal mandate to restructure the nation's electric power generation, transmission and distribution system.

Also included were provisions that raised Barrett's interest in whether the administration was trying to implement Clean Air Act regulations legislatively. "After listening to the Energy department's witness discuss the administration's deregulation bill, it's clear that the President is imposing a new agenda of implementing" clean air regulations that have been ruled unconstitutional by a federal court. Barrett said it appeared to be an issue of "large energy corporations salivating for deregulated markets."

He added, "Improving efficiency is not enough to justify changes if it unfairly harms people and farmers in rural areas who can't possibly shoulder the burden of higher rates."