PURPA Reform Group Praises Bush Administration for Including PURPA Repeal in National Energy Strategy

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For Immediate Release

PURPA Reform Group Praises Bush Administration for Including PURPA Repeal in National Energy Strategy

DISTRICT OF COLUMBIA, WASHINGTON, May. 17 -/E-Wire/-- The PURPA Reform Group today applauded President George Bush and Vice President Dick Cheney for recommending prospective repeal of the

Public Utility Regulatory Policies Act of 1978 (PURPA) as a part of their

comprehensive national energy strategy. PURPA requires utilities to purchase power

from certain favored generators at government-set rates that have greatly exceeded

market prices over the past decade.

"We applaud the Bush Administration for recognizing that PURPA is a barrier to

competition," said Cynthia Stinger, chair of the PURPA Reform Group and a Vice

President of GPU, Inc. "To achieve a truly competitive market, utilities should no

longer be forced to purchase electricity from any generator."

PURPA is the last surviving remnant of former President Jimmy Carter's misguided

National Energy Plan. President Bush acknowledged in his campaign energy strategy

that repeal of PURPA's mandated electricity purchase and sales obligations pursuant to

government-determined prices is long overdue.

Last week, Rep. Cliff Stearns, R-FL, who has introduced stand-alone PURPA repeal and

cost-recovery legislation in Congress sent a letter to Vice President Cheney urging

that PURPA reform be included in the Administration's comprehensive energy strategy.

Sen. Frank Murkowski R-AK has also included PURPA reform in his energy legislation.

"PURPA reform has enjoyed a great deal of bipartisan support in both the Senate and

the House," Ms. Stinger added. "We hope that this Administration's endorsement of

PURPA reform will finally turn that support into action."

Contrary to the stated intentions of its authors, PURPA has not met its goals of

increasing the generation of electricity from non-traditional fuels. The vast majority

of PURPA power, in fact, is generated using fossil fuels. Independent studies document

the cost of PURPA at more than $8 billion per year in excessive electricity costs.

Members of the PURPA Reform Group include Energy East, Duke Energy, GPU, Progress

Energy, Niagara Mohawk, Puget Energy and Sempra Energy.

http://www.PURPAreform.org

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