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Show AAT Congress Should Facilitate aCET Eee Deregulation of Electricity BY MARY L. WALKER 1FOR KNIGHT-RIDDER NEWSSERVICE Even as deregulation of the etectricity supply industry bevomesa Jorn reality, it must ‘be acknowledged that the road to full competition hegins in Washington. If deregulationis to bring achange for the better, Congress ‘inust ensure that the benefits of ¢bmpetition reach the millions of ~Americans whoseelectricity currently comes from gcovernment- ownedutilities. :©This is not @ routine legislative wiatter. Congressional action could determinenot only whether ‘very tangible benefits will flow to families and businesses who are captive to municipal-owned utilities but also the future of rural electric cooperatives and federal ‘power-marketing systems such as the Tennessee Valley Authority ‘and the Bonneville Power Administration in the Northwest. The issue has been cast as a classic confrontation betweenpri\yate and public poweronthe part those in Congress who simply ‘want to exempt someof the na‘tion’s largestutilities from the debate. For example, the Tennessee ‘Valley Authority was needed -‘once. In its early years,atleast, its \vision was downrightheroic, '=The TVA,like other federally ‘owned power companies, arose ‘from the fierce battles in the '1930s between private holding companies that monopolized the electrical market andthe populist impulsesof a region deeply suspicious of big business. TVA and jother federai powel rketing ‘agencies broughtelectricityto rutral Americ Today, 99.9 percent ‘of America is wired. It follows \that the federal power-marketing ‘agencies, just like the rest of the ‘electricity industry, must now ichange to recognize thatfact. t Those whe opposepublic--pow- ‘er reform maintain that it will ‘hurt rural consumers,but they igtore that shareholder-ownerutiltities now provide 60 percent of 'the power that goes to rural ‘Americans, } Competition, public-power adlvocates say, will leave lot of ru- 'ral Americans behind. Richard ‘Manson,executivedirectorof the ‘Northeast-Midwest Institute, has {pointed out that a similar argu- iment was used againstairline de- S 8 L Toa) be torn down. Unlike airline Toutes, the electricity distribution infrastructureis a fixed asset; it’s immovable. Once rural customers are hooked up, they can access electricity over this fixed infrastructure. So theissue is not whether pub- lic power customers — and there are 40 million in America — will have power, but whether they can join other Americans in obtaining competitively priced electricity. The status quo is simply too ex- How ‘bout that Jazz! Utah’s own NBA teamis gearing up for another run at the NBAfinals. Join the excitement with the pensive for both taxpayers and Utah Jazz Playoffs, a special newspaper sec- ratepayers. tion tailored to the sports fan in all of us. The section will reach 443,500 adult readers of The Salt Lake Tribune and Deseret News. Understand this: Public power entities pay no property,sales, excise, gross receipts or incometaxes, What's more,theycan raise in- moneydirectly from the federal governmentor by issuing tax-exemptbonds. Public poweralready receives an estimated $11 billion a year in federal subsidies. Featuring player bios, lots of great Jazz stats, a playofts calendar, feature stories and other topicsJazz fans jump for. The Utah Jazz Playoffs section will be a slam dunk with readers and show your support for Utah’s NBA team. Advertising spaceis limited, so calll your account executive today! want both to advance competition in the electricity industry and Inaintain a balanced budget, the Advertising space reservation tions issued by he Internal Reve- For moreinformation, contact your accountexecutive or call 237-2815. vestment capital by borrowing Yet, at a time when lawmakers Deadsine Is Friday, Apri 10 Clinton administration has done just the opposite. New regula- nue Service permit governmentownedutilities to use facilities financed with tax-exempt debt to sell electricity outsideof their ci ies and towns, Simply put, municipal-owned utilities will be allowed to use their subsidies to lure new customers away from and compete with tax-paying, investorowned utilities and other private electricity companies. And there are other inequities that run counter to fair cormapeti- tion, The Bonneville Power Ad- Two of the best ministration, for example, already sells billions of dollars of “excess” federal power to whole- sale customers in California. TVA is trying to marketelectricity out- rates you've ever sideofits service territory, using tax-exempt federal financing. Yet, a “fence” created by the TVASelf-Financing Act of 1959 protects it from competitors. The federal government thus laid eyes on enjoys ultimate authority over an impressiverangeofactivities that affect the sale of electricity throughout the country, not to mention costs borne by taxpayers and ratepayers.It should notside- step the many problemsassociated with government-subsidized public power. ‘reguiation, but the situation with ‘electricity competition is entirely {different. Electric poles and wires {in rural areas, whether public or ‘private, are already in place. These distribution lines will not Mary L. Walker, a San Diego lawyer, was assistant secretary for environment, safety and health at the U.S. Departmentof Energy from 1985 to 1988. Ae you anxious? Worried? Easily fatigued? Is it difficult to CONCENTRATE? yu Irritable? bo you nee muscle tension? Is your sleep disturbed? ' please call the MOODDISORDERS CLINIC for Information about free study drug research for NERALIZED ANXIETY DISORDER 581-8806 The options for borrowing against your home have never looked better. Now you UNIVERSITY OF UTAH HEALTH SCIENCES CENTER can get a line of credit at Prime + 0% for the life of the line or a fixed rate loan below Primerate. To apply,visit a KeyCenteror call 1800-KEY2YOU" press 2 vweww.key.com * NOW [S THE TIME TO BUY This means you can have a coo! home this summer when It’s very hot. With your good credit you can have a new Lennox Air Conditionerinstalled by Air Comfort and pay for it on your gas bill. What a deal! 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