Could tank the whole US economy!

DJ Greenspan Cites Concern About Electric Sector Investment
Dow Jones International News Service -- July 20, 2000  [Return to Headlines]


WASHINGTON (Dow Jones)--Federal Reserve Board Chairman Alan Greenspan told
Congress Thursday he is concerned that disincentives for investment in the
electricity sector will destabilize the overall U.S. economy.

"The propensity to build new electric power facilities is being
disincentivized," Greenspan said.

"I'm worried about the instability that that creates within the economy and
the difficulties that might emerge as a consequence of that," the Fed
chairman said in response to a query by Sen. Charles Schumer, D-N.Y.

"It is an issue we need to address," Greenspan said.

U.S. utilities have failed to make needed investments in generation plants
and transmission lines over the last decade in the face of regulatory
uncertainty posed by state and federal deregulation efforts.

Energy Secretary Bill Richardson has been touring the country in recent
months, warning that the problem is contributing to power supply shortages
in summer months, when hot weather sends electricity demand - and prices -
soaring.

Richardson says Congress needs to enact a comprehensive bill restructuring
the $215 billion electric industry to end the uncertainty and give the
sector renewed incentive to make needed investments. By Bryan Lee;Dow Jones
Newswires;202-862-6647, bryan.lee@dowjones.com


(END) Dow Jones Newswires 20-07-00

1948GMT


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