WASHINGTON – Federal energy regulators are not providing information about energy issues at a pace to keep up with the market, a Maine public utilities commissioner told a Senate committee Wednesday.
The commissioner, William M. Nugent, told the Senate Energy Committee that more than 20 filings by the New England Power Pool have been sitting at the Federal Energy Regulatory Commission unanswered, leading to uncertainty in the ever-changing energy market. NEPOOL consists of energy market representatives from New England states.
“We need market rules that more clearly spell out the rules,” Nugent told the senators. “You and FERC write the rules; the regional markets need prompt, informed decisions.”
Nugent also fielded questions from senators about Maine’s energy deregulation and speculated on a short-term energy policy in the hearing on developing a national energy policy. Maine’s energy policy is being looked at as an example of a successful deregulation process while California stands as an unsuccessful model.
Sen. Frank Murkowski, R-Alaska, said he wanted Nugent to work with the committee in the future by giving expert opinion on legislation drafted by Sens. Dianne Feinstein, D-Calif., and Jeff Bingaman, D-N.M.
Nugent recommended that FERC add two members to its five-member panel, bringing the total to seven. The FERC panel regulates interstate trade of electricity, natural gas and oil for the country and currently is working with a three-member panel while awaiting additional appointments by the Bush administration. Without being more specific, the White House said the positions will be filled “as soon as possible.”
FERC also should develop committees that look at regional energy concerns to provide more support to states, Nugent said.
Sen. Larry Craig, R-Idaho, agreed, saying the California energy crisis has had major consequences for surrounding states.
Decisions made by FERC have major economic implications in the energy marketplace and need to be informed and specific, Nugent said.
A recent FERC ruling to impose a penalty on some Maine electricity suppliers for “installed capacity” violations, which translates into higher monthly bills for consumers, is being criticized by the Maine congressional delegation, said Dave Lackey, spokesman for Sen. Olympia Snowe, R-Maine.
Quick calculations made by Nugent put the consumer cost of the ruling at $84 per household.
In the hearing, a debate on conservation and environmental issues also arose.
Murkowski, a major supporter of drilling in the Arctic National Wildlife Refuge in Alaska, told Nugent that people in Maine should be less concerned with the environment if they want lower bills.
“How do we bring the environmental community to awareness that conservation is not enough?” Murkowski asked. “[Maine] is very dependent on heating oil.”
Snowe and Rep. Susan Collins, R-Maine, oppose drilling in the refuge area.
Also testifying with Nugent was a global energy expert who said building electricity supplies should be the country’s main concern in addressing energy issues.
A Middle East energy expert said dependence on foreign countries only would increase unless the United States developed an extensive conservation policy. He also said blackouts in the New York City-area this summer were expected because of slow energy transmission from New England.
Nugent will be on Capitol Hill again in April to testify for the House Energy Committee.
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