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S. HRG. 102-5 (Pt. 9)

NATIONAL ENERGY SECURITY ACT OF 1991

(Title XV)

S. 341

TO REDUCE THE NATION'S DEPENDENCE ON IMPORTED OIL, TO PRO-

VIDE FOR THE ENERGY SECURITY OF THE NATION AND FOR OTHER

PURPOSES

MARCH 14, 1991

PART 9

Printed for the use of the

Committee on Energy and Natural Resources

U.S. GOVERNMENT PRINTING OFFICE

41-0925

WASHINGTON : 1991

For sale by the Superintendent of Documents, Congressional Sales Office

U.S. Government Printing Office, Washington, DC 20402

J. BENNETT JOHNSTON, Louisiana, Chairman

DALE BUMPERS, Arkansas

MALCOLM WALLOP, Wyoming
WENDELL H. FORD, Kentucky

MARK O. HATFIELD, Oregon
BILL BRADLEY, New Jersey

PETE V. DOMENICI, New Mexico
JEFF BINGAMAN, New Mexico

FRANK H. MURKOWSKI, Alaska
TIMOTHY E. WIRTH, Colorado

DON NICKLES, Oklahoma
KENT CONRAD, North Dakota

CONRAD BURNS, Montana
DANIEL K. AKAKA, Hawaii

LARRY E. CRAIG, Idaho
WYCHE FOWLER, JR., Georgia

JOHN SEYMOUR, California
RICHARD C. SHELBY, Alabama

JAKE GARN, Utah
PAUL WELLSTONE, Minnesota

BENJAMIN S. COOPER, Staff Director

D. MICHAEL HARVEY, Chief Counsel

G. ROBERT WALLACE, Staff Director for the Minority

GARY G. ELLSWORTH, Chief Counsel for the Minority

CONTENTS

Page

S. 341 (Title XV)...........

79

17

350

223

43

7

400

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NATIONAL ENERGY SECURITY ACT OF 1991

(Title XV)

THURSDAY, MARCH 14, 1991

U.S. SENATE,
COMMITTEE ON ENERGY AND NATURAL RESOURCES,

Washington, DC. The committee met, pursuant to notice, at 10 a.m., in room SH216, Hart Senate Office Building, Hon. J. Bennett Johnston, chairman, presiding. OPENING STATEMENT OF HON. J. BENNETT JOHNSTON, U.S.

SENATOR FROM LOUISIANA The CHAIRMAN. The hearing will come to order.

Today, we consider Public Utility Holding Company Act reform as part of S. 341. I consider PUHCA reform to be a very, very important part of this legislation.

I have a written statement which makes considerably more sense than what I have to say off the cuff, so I will put that in the record and invite you to read it. Conway wrote it, and therefore it is pretty good, but let me just give you a few comments.

What this bill is about is competition. Why would it be better to have a number of sources to generate electricity than to rely only on the company, whether they be exempt companies or whether they be registered holding companies?

What we found out in this country in over 200 years is that competition is better. It is better because people first of all can specialize in the generation of electricity, either in one form of that generation, be it natural gas, or coal, or nuclear, or solar—and we have specialists that do that very well.

We know that we can share the risk. You can have a very big plant and you can share that risk first of all among a number of utilities. Secondly, you can share it-you can have the generator accept the risk.

For example, I was speaking this morning to the natural gas people and talking about the fact that the big risk today probably in natural gas is not supply so much. Bud Lawrence tells me there is enough natural gas for 3,000 years, I think it is. Not seriously, but there is a lot of natural gas out there.

The risk really is the price, and producers are generators can take that risk, or help share that risk, and therefore bring natural gas more into the arena where it can be considered, and you can go right down the list of technologies and find that people who deal in

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