Roll call: House rejects changes to electricity regulation in energy bill

On April 11, by a vote of 193 to 237, the House rejected a complicated amendment to the Energy bill (HR 6) that would have removed deregulatory language from the Federal Power Act. The amendment would also have given broad-ranging new powers to the Federal Energy Regulatory Commission (FERC)to make rules for electricity sales.

Specifically, the amendment would have barred "any fraudulent, manipulative, or deceptive device or contrivance in contravention of such rules and regulations as the Federal Energy Regulatory Commission may prescribe as necessary or appropriate in the public interest."

"This amendment gives FERC broad authority to take action against fraud in both electricity and natural gas markets," said the amendment's sponsor, John Dingell (D.-Mich.). "The commission's report recently found that some of the abuses in Western markets during 2000 and 2001 were not even illegal. This bill would correct that."

Rep. Joe Barton (R.-Tex.) argued heatedly against the amendment. "This is an expansion of Federal authority over natural gas and electricity generators and transmitters anywhere in this country, regardless of their size" he said. "The electricity section of the bill"-the part Dingell's amendment would repeal-"has bent over backwards to develop a compromise that protects states, protects small co-ops, protects small municipalities against FERC jurisdiction," Barton continued. "The Dingell substitute right off the bat says 'any entity.' It then goes further. Not only the FERC, but federal courts, can prevent these entities from distributing or transmitting or generating electricity or natural gas."

Barton also complained about another provision that would bar American companies from selling electricity if they were found guilty by foreign courts of fraudulent electricity dealings in foreign countries.

"If we read [the amendment] literally, a U.S. energy supplier that tried to sell electricity in Iraq and was convicted in a Saddam Hussein court could be prohibited in the United States of America from transmitting or generating electricity or natural gas," he said.

Barton ended his attack by calling Dingell's amendment "an attempt to be punitive towards any entity in this country that is engaged in the generation and transmission of electricity or natural gas. It may be well intentioned, but it is totally misguided. I hope we will reject it out of hand."

The amendment, though clearly favored on the whole by liberals and opposed by most conservatives, was somewhat complicated and did not cause a completely clear ideological division on the House floor, with various special interests lined up for and against it.

Dingell's amendment would also have prevented FERC from getting "partial jurisdiction" over the Tennessee Valley Authority, which is probably the reason the entire delegation of the state of Tennessee voted in favor of it. Calls to Tennessee congressmen had not been returned by press time.

A "yes" vote was a vote for the Dingell amendment to the House energy bill, that in general could have increased federal energy control. A "no" vote was a vote against the bill.

Copyright Human Events Publishing, Inc. May 5, 2003
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