Energy bill stirs outcry in the South
By JIM GALLOWAY
The Atlanta Journal-Constitution
CHARLESTON, W.Va. -- Southern governors on Monday criticized a bid to federalize the nation's neglected electricity grid as a power grab by other states that have not made the sacrifices to build enough generators and transmission lines.
The governors said that plans in Congress to install regional watchdogs over electric utility companies would step on the sovereignty of states and could cause higher power bills -- by forcing Southern consumers to pay for the transmission of power to other parts of the nation.
At a three-day meeting of the Southern Governors Association, two Georgia officials were among the most outspoken to provisions contained in the energy bill now before House and Senate negotiators in Washington.
Gov. Sonny Perdue said Georgia should not be penalized for the failure of other states to keep up with their own power demands.
"People have not wanted to acknowledge the consequences of non-decision," Perdue said. "They want power generated elsewhere. Then when they have a problem, they want everyone to pile in and help."
Georgia Public Service Commissioner Stan Wise, who also is president of the National Association of Regulatory Utility Commissioners, expressed concern that the "ultimate goal" of the federal legislation was to break up such utility companies as Southern Co. Atlanta-based Southern Co. controls both the generation and delivery of electricity in four states.
The August blackout of much of the Northeast and parts of the Midwest has revived efforts to regulate the transmission of electricity between regions of the country.
The plan pits the power-rich states, mostly in the South and Northwest, against areas starved for electricity.
Since the California blackouts of 2001, the Federal Energy Regulatory Commission has been examining ways to restructure the way energy is produced and transmitted across the country.
FERC wants an open, interstate transmission system, which would encourage competition in wholesale electricity markets. Neutral entities, appointed by the federal government, would regulate power flow across four separate regions. Now, the states oversee the task, including the PSC in Georgia.
Supporters liken the plan to federal regulation of interstate waterways.
Southern governors almost unanimously say it would eliminate one of the few competitive advantages in their region.
"The idea of bailing out California for some poor decisions doesn't make sense," South Carolina Gov. Mark Sanford said. "But if they will help us on education financing, I'll be happy to help them on energy financing."
Although FERC Chairman Pat Wood of Texas is a Bush appointee, last week the administration indicated that it was willing to scrap the FERC plan for three to four years and make regional oversight a voluntary measure.
But just as quickly, a bipartisan coalition of 17 U.S. senators, mostly from the Northeast, demanded that Sen. Pete Domenici (R-N.M.) back the FERC plan. Domenici chairs the Senate Energy and Natural Resources Committee.
The lines drawn in the fight over power grids have a great deal to do with attitudes toward deregulation of the power industry.
Most Southern governors now oppose it.
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