*  from Reg Affairs



House backs 15-month delay in electric deregulation law 
By CHARLES E. BEGGS 
Associated Press Writer 

May. 24, 2001 
Associated Press Newswires 
Copyright 2001. The Associated Press. All Rights Reserved. 

SALEM, Ore. (AP) - The Legislature on Thursday took its biggest step so far 
toward delaying partial deregulation of business electricity rates when the 
House voted for an 18-month postponement. 

A bill passed by a 48-11 vote would put off from Oct. 1 to at least March 31, 
2003, the effective date of a law allowing the large business customers to 
buy power on the open market. 

The bill goes to the Senate, where some changes are expected. The law, passed 
in 1999, doesn't change regulation of electricity rates for homes and small 
businesses

The law would permit largest business and industrial customers of Portland 
General Electric and PacifiCorp, the state's two largest privately owned 
electric utilities, to seek electricity on open markets.

Backers of the delay say California's failed deregulation plan and uncertain 
hydropower supplies because of the Northwest's drought, likely leading to 
rising power prices, argue for postponing the change.

"This gives us a better chance to look at where Oregon is going," said Rep. 
Rob Patridge, R-Medford. "There are many uncertainties" about the Oregon law, 
he said.

An 18-month delay would put the issue back before lawmakers in their next 
session, which would begin in January 2003. House Speaker Mark Simmons, 
R-Elgin, said he expects the Senate will push for a shorter deferral.

Foes of the bill claimed it will not hold down rates and will only make the 
situation worse.

Rep. Bill Witt, R-Portland, said the problem is a lack of power supply to 
meet growing demand and that the measure "chills investment in new capacity.

"We are sending a clear signal that you can't do business in Oregon" because 
the rules are uncertain, he said.

Witt said the deregulation law was well crafted and doesn't contain the flaws 
that contributed to California's problems such as requirements forcing 
utilities to sell off generating plants.

However, Rep. Robert Ackerman, D-Eugene, said the chaotic power market has 
created fear among businesses, nonetheless, and that some estimate they would 
face fourfold power increases in an unregulated market.

Delay supporters said lawmakers are taking steps to stimulate more power 
production including passing a bill to streamline siting of temporary 
generating plants, which Gov. John Kitzhaber has signed.