WASHINGTON, DC, October 7 --Today we announce the creation of a new coalition. The Alliance to Protect Electricity Consumers is a group of consumer, environmental, senior citizen, industry and labor groups that believe that they must be listened to when the electric industry is restructured.
This is not the first time such a group has come together. We join forces each time there is an energy crisis. And an energy crisis could occur if restructuring is not done responsibly, with care, with sensitivity, with thoughtfulness.
Electric power is one of our nation's greatest assets. It contributes to the well-being of households and industry. Our electric rates are among the lowest in the world. We have service day and night. It is efficient and reliable. Consumers have the added protection that electric utilities are held accountable by federal, state, and local regulators.
Why a coalition to protect electricity consumers? Because we are the users of electricity, we are the workers to provide that electricity, we are the industry that supplies that electricity.
And we have major concerns:
Reliability -- many electric power companies, preparing for competition are cutting costs and deferring maintenance. Such cost-cutting could result in systems so overstretched that they may not be able to operate efficiently in times of peak demand or during storms, when many consumers are most vulnerable.
Cost to Consumers -- electric rates could increase for residential customers and small businesses due to profiteering, temporary shortages, and the shifting of costs to those who can least afford it.
Societal Impacts -- Lifeline, low income assistance, wildlife preservation, service cut-off protections, and community services such as lighting for playgrounds and athletic fields currently funded by local power companies may be at risk.
Universal Service -- Reliable service must be made available to consumers, whether they live in the inner city or in a rural area or a region in economic trouble.
Tax Revenues -- What happens to a community school or fire station that relies on the local electric power company taxes?
Stranded Costs -- Under deregulation, some electric power companies may not be able to recover the costs they incurred to provide electric service.
Stranded Workers -- What happens to skilled and experienced workers who lose their jobs? What affect will it have on their families and their communities?
Mergers and Market Dominance -- Will ongoing consolidation of existing electric utilities and other energy industry companies lead to abuse and manipulation of energy markets?
Environment -- Environmental and conservation programs such as funding of renewable resources could be dropped or not expanded.
Safety -- Will worker safety and public safety be threatened by continued cost cutting?
Any deregulation plan that does not deal responsibly with these issues should be rejected -- any deregulation plan that does not deal responsibly with these issues is not in the best interest of all consumers.