Did You Know

Leading Editorial Pages Urge President Bush and Congress
To Accelerate Development of Regional Transmission Organizations

The blackout has produced one remarkable effect: the editorial pages of major American newspapers from both ends of the political spectrum have been steadfast in their support for wider implementation of regional transmission organizations (RTO) and competitive markets, along with improved reliability standards.

Within days of the blackout, both The New York Times and The Wall Street Journal ran lead editorials agreeing that advancing the Federal Energy Regulatory Commission’s vision of competitive wholesale markets is necessary to improve our nation’s electricity grid.

Describing opponents of RTO expansion, The New York Times said: “They cloak their agenda in righteous rhetoric about the dangers of yet another ‘federal takeover’ of state authority. What they really want to do is hang onto an old and uncoordinated system that ill serves the rest of the nation.” (“Of Grids and Gridlock,” Aug. 19)

The Wall Street Journal called the FERC plan, “arguably less intrusive than a system of state monopolies, and as the PJM experience shows it holds the promise of increasing both the competitive supply and reliability of electrical power.” (“Political Blackout,” Aug. 18)

Recent editorials in both The Economist and The Washington Post have also urged Congress to dismiss calls for delay from narrow regional special interests.

“Another lesson for America from across the Atlantic is not to allow illiberal voices and entrenched monopolists to seize on the power cuts as a reason to stall market reforms,” the Economist said.

“Such lobbies were quick to use blackouts in California and the Enron collapse to attack deregulation. But experience with electricity liberalization in Europe, which only two months ago agreed to speed up reforms, makes clear that this argument is nonsense,” according to the Economist. “Deregulation, if done properly, is far better than state monopoly control.” (“How to Keep the Lights On,” Aug. 23)

The Washington Post was equally clear: “In a few places, notably the South and the Northwest, large utilities, and the politicians they support, have fought tooth and nail to prevent the Federal Energy Regulatory Commission from enforcing reliability standards or uniform market rules of any kind.”

“Sometimes,” the Post continued, “they use bogus language about ‘states rights’ to justify their views. In reality, their aim is to protect local interests, and their effect is to prevent the modernization of the whole system.” (“Electric Shock,” Sept. 2)

The Washington Post even reinforced its support for FERC’s initiatives in a second editorial three days later.

“Genuine reform of the grid needs to go deeper, including not just mandatory reliability standards but requirements for utilities to join RTOs, as well as the establishment of consistent rules for the national market,” the Post said. “House negotiators don’t strongly oppose such measures, but a handful of senators, most notably Sen. Richard C. Shelby (R-Ala.), have tried to postpone them.” (“A Slimmer Energy Bill,” Sept. 5)

For more information, contact EPSA’s Gene Peters at gpeters@epsa.org or Andrea Spring at aspring@epsa.org, or call (202) 628-8200.