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Stranded Costs (Sections 101, 301). The Administration's bill would force ratepayers to bail out electric utilities for "stranded costs," or uneconomic investments in power plants, power contracts, and other assets that require subsidies to continue operating.

Air Pollution (Section 701). The Administration's bill ignores the fact that most coal-fired power plants are exempt from many provisions of the Clean Air Act, which means that these plants can continue producing one-third of the nation's carbon dioxide pollution (a greenhouse gas), two-thirds of sulfur dioxide pollution (acid rain), and one-fifth of toxic metal emissions, including mercury. Instead of putting forward policies that would retire and replace the dirtiest power plants with cleaner and safer plants, the Administration's bill would create a "nitrogen oxides cap and trade program."

Nuclear Decommissioning Costs (Section 1002). This provision would allow nuclear utilities to continue receiving a reduction in taxes for amounts paid into their decommissioning funds. This provision would continue giving taxpayer money to nuclear utilities that have already received billions in subsidies.

Citizen Utility Boards. The Administration's bill fails to include the requirement that states create a Citizen Utility Board. In states that keep regulated retail rates, the CUB will represent residential consumers in utility rate cases before state commissions.

Marketing Fraud. The Administration's bill makes no mention of the need for federal and state agencies to update and enforce standards that protect electricity consumers from fraud perpetrated by unscrupulous electricity suppliers.

Aggregation (Section 103). The Administration's 1998 bill did not even mention aggregation, so the inclusion of an aggregation section is a strong improvement. This section would allow customers "or any entity acting on behalf" of customers to combine their buying power to purchase electricity. However, this provision does not preempt state laws that have erected barriers against certain types of aggregation, such as Community Choice, in which a municipality can purchase electricity on behalf of its citizens/consumers.

From Public Citizen's response to the Clinton administration deregulation bill, April 27, 1999. For the full document, see the CMEP Web site at www.citizen.org.