Proposal Could Weaken Role of States
By Peter Behr and James V. Grimaldi
Washington Post Staff Writers
Sunday, August 17, 2003; Page A17
The Bush administration will side with a Senate Republican attempt to freeze a controversial regulatory proposal meant to strengthen the nation's aging power transmission system, which was blamed in last week's massive blackout, a senior administration official said yesterday.
The proposal by the Federal Energy Regulatory Commission would create regional transmission organizations to control the flow of power over state lines and oversee the upgrade of the transmission system. It would also, though, shift authority away from state regulators and major electric utilities, something that is anathema to opponents of the plan, who are centered in southeast and northwest states. They say the creation of larger, more closely interconnected transmission grids would create a greater risk of cascading outages.
In backing a three-year freeze of the regulatory plan, Bush is going against his handpicked FERC chairman, Pat Wood III, the former chief energy regulator in Texas. But political opposition to the FERC plan has grown so strong that a comprehensive energy bill could fail to pass unless the plan is frozen, said the administration official, who is involved in energy issues but would not agree to be identified.
"Nobody wants to knee-cap Pat Wood," the administration official said. But "FERC has run into a lot of opposition," jeopardizing the broader energy legislation. Bush's aides say that even if FERC is blocked, other parts of the energy bills in Congress would boost investment in the power grid by loosening regulation to encourage non-utilities and foreign firms to own transmission lines. The president urged Congress last week to upgrade the nation's power transmission network, and FERC supporters had assumed the administration would back its regulators.
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http://www.washingtonpost.com/wp-dyn/articles/A4455-2003Aug16.html