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Federal Energy Bill Update: “Stay Tuned!”
In fits and starts, Congress has been trying to pass a comprehensive energy bill for the last five years. Every past attempt has failed when compromise could not be achieved on critical issues such as an electricity title and a tax title. With enormous pressure coming from the White House, and Senate and House leadership, all indications are that Congress may actually pass such an energy bill this year.
The U.S. House of Representatives passed its energy bill (HR 6) in April 2003. It was a bad bill from a public power perspective and from a Wisconsin perspective on a number of key points, reflected in the fact that 7 of the 8 members of the House from Wisconsin voted against the bill, Rep. Paul Ryan being the exception. The Senate followed in late July 2003, passing last year's Democratic version of the bill (supported by Senator Herb Kohl; opposed by Senator Russ Feingold), Senate leadership being forthright that passage was only a vehicle to get to Conference Committee where Senator Domenici's version of the energy bill would be substituted in. Both bills went to Conference Committee in early September, and there have been fits and starts at a comprehensive compromise energy bill ever since.
On October 20, 2003, Senate Energy and Natural Resources Chair Pete Domenici (R-NM) and House Energy and Commerce Chair Billy Tauzin (R-LA) jointly announced that, aside from a final compromise on the $16 billion tax title, the compromise energy bill was close to being released. “We see no reason final passage of the bill can’t occur soon after the conference [committee] is completed. Members of Congress have spent the past three years negotiating the resolution of difficult, regional issues in this bill. We are on the verge of passing a comprehensive energy bill for the first time since 1992.”
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Editorial
Don't Limit Cable, Internet Competition
Wisconsin shouldn’t be in the business of protecting large cable television and telecommunication companies from competition. For that reason, the Legislature should reject a new measure that would discourage a community from starting its own cable TV, telephone or high-speed Internet service.
At stake is consumers’ ability to benefit from the choice and creativity that competition in the marketplace supports - or, sometimes, the ability to benefit from any service at all.
For several years, cable TV and telecommunications companies have been concerned about a small but growing trend: Local governments, fed up with the monopoly power of cable TV and telecommunications companies, have started creating their own services.
In Wisconsin, Oconto Falls and Reedsburg operate municipal cable TV systems, and Reedsburg, Sun Prairie and Waupaca offer high-speed Internet service.
Sometimes the municipal services compete directly with services provided by a corporation. Sometimes, they exist to meet consumer demand that corporations declined to meet. Waupaca's high-speed Internet service, for instance, began after a small business in need of high-speed connection was unable to persuade any companies to offer the service in the community of 5,000.
There’s a significant argument against this trend: Local governments might compete unfairly by having taxpayers subsidize the services. And the latest measure to hamstring local officials, Senate Bill 272, is promoted as an effort to ensure “a level playing field” among competitors.
However, the problem the bill is supposed to solve doesn’t exist. State law and accounting requirements enforced by the Public Service Commission already ensure, with few exceptions, that local governments and private service providers operate on a level playing field. As evidence, look at the state's long history of regulating municipal electric utilities alongside the major power companies.
Rather than promote fair competition, the new bill would tilt against local governments. It would add requirements, with public hearings and cost-benefit analyses, that are clearly designed to discourage local governments from entering the market.
The state should be sensitive to fair play in the marketplace. If a problem arises in the future, legislation narrowly crafted to solve the problem is worth considering. But SB 272 goes too far to encumber local governments and, consequently, to restrain competition. The bill should be defeated.
This editorial was published in the October 19, 2003, issue of the Wisconsin State Journal and is reprinted with permission.
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MEUW Leads Many Organizations in Muni Telecom Fight
MEUW is leading several state wide organizations in opposition to Senate Bill 272/Assembly Bill 588. These groups include: the League of Wisconsin Municipalities, the Wisconsin Alliance of Cities, the Wisconsin Counties Association, the Wisconsin Association of School Boards, the Wisconsin Towns Association, the Citizens Utility Board, the North Shore Cable Commission, and the Regional Telecommunication Commission (the last two are Milwaukee area community-based groups).
Here are five main reasons why SB 272/AB 588 should be defeated:
• SB 272/AB 588 Would be in Direct Violation of Federal Law. Section 253(a) of the Federal Telecom-munications Act 1996 states: “No state or local statute or regulation, or other state or local legal requirement, may prohibit or have the effect of prohibiting the ability of any entity to provide interstate or intrastate telecommunications service.” (Emphasis added).
• Current Statutes and PSC Regulations Already Provide Accounting and Reporting Requirements for Municipal CLECs. The Commission ... concluded as follows: “The facts of record do not warrant imposing additional statutory requirements on [Reedsburg/Sun Prairie] beyond those imposed in certifications with interim conditions for similar applications [by private entities].”
• Unfulfilled promises of telecommunications deregulation. Despite claims to the contrary, there is very clear evidence that neither the cable television industry nor the local telephone markets have effective competition. (How many cable TV companies are in your town?)
• While Proponents of SB 272/AB 588 Characterize the Bill as a “Level Playing Field” Bill, Read the Fine Print! The facts show that more than a dozen state statutes currently apply to Wisconsin municipalities and their utilities (e.g., Code of Ethics, competitive bidding, open meeting and open records, etc.), but do not apply to private sector companies.
• Current Laws Prevent Cross-Subsidization by Municipal Utilities. Municipally owned public utilities are regulated by the PSC and must follow the Uniform System of Accounts for Municipally Owned Utilities (USOA) (see Wis. Stat. 196.06).
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Editorial
City of Medford Should Explore Cable Television Options
Cable television giant Charter Communications is thumbing its nose at the City of Medford and giving a “so what” attitude to provisions in the franchise agreement.
These provisions include having a “fully staffed office” in Medford and providing service to city buildings and schools free of charge. After negotiations with the city over closing the local office fell through earlier this summer, Charter’s representatives told the city they would have to work through the company’s legal department in the future. Since that time, the local office hours have been cut back to the point where it is a joke to even say that Medford has a cable office.
City Attorney Ken Schmiege reviewed the franchise agreement and told the council that “yup,” the cable company was not living up to its side of the bargain. The remedy for the city is legal action and taking the company to court to force them to live up to the contract terms.
Although the city is in the right and could likely eventually win in court (you never know when juries are involved), litigation is probably not the route the city should follow.
You see, Medford has a single City Attorney who works for the city part-time in addition to his private law practice. Charter, on the other hand, has deep pockets and a cadre of leashed lawyers who could drag the litigation out quite literally for years.
Draining city taxpayers and coffers to win a Pyrrhic victory is not using common sense. Especially since Charter would likely just pass its costs directly to Medford’s cable customers. Sometimes it makes more sense to suck it up when wronged and look instead at alternatives.
Charter is currently the only game in town for digital cable television. That doesn’t have to be the case. The city should explore the costs involved with forming its own cable television utility. Other communities in the state, including Sun Prairie and Reedsburg, are looking at going that route and have launched feasibility studies. A municipally owned cable television company would be more responsive to the needs of the community and potentially offer services at a cheaper rate. A quick comparison of the electric rates paid by customers in Medford to other nearby communities supports the idea that there may be cost savings from eliminating corporate salaries and administrative overhead.
With the city-owned electric company, the community is already over halfway there. The city rate payers own the poles and equipment to string power lines, cable lines are not that different from power lines. It would require a tremendous investment in capital and resources to bring the service on-line. These costs need to be studied as part of an overall feasibility study.
The reality is that cable television access in Medford is a monopoly run by fat cats in corporate offices far away. In the absence of local competition, setting up a taxpayer-owned monopoly makes more sense then sucking money out of the community.
This editorial was written by Brian Wilson, Associate Editor, The Star News (Medford, WI), was published in the July 31, 2003 issue of The Star News, and is reprinted with permission. Medford is an MEUW member community (pop. 4,310) located in north-central Wisconsin. Legislation has been introduced in the Wisconsin Legislature (SB 272/AB 588) that would greatly hinder Medford’s telecommunications options. See article above.
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Hypothermia: A Cold Weather Hazard
By Dean Larson, MEUW Safety Director
Working in cold weather and enjoying outdoor activities is a way of life in Wisconsin. Everyone is aware of some of the dangers such as slips or falls on ice and snow or falling through the ice. Hypothermia is something we normally don’t think about because we are used to the colder temperatures. The onset of hypothermia can start before you realize what is happening and without proper care can be deadly.
To understand hypothermia we first need to understand how our body loses heat. A by-product of your basal metabolic rate is heat production. In order to keep your body from melting down, there must be some heat loss. This heat loss occurs in the following ways. Heat is lost by conduction when we sit on a cold surface. Sweating causes great heat loss, much of it going unnoticed. The simple act of breathing also results in significant heat loss. The body’s core temperature only has to fall two degrees for the onset of hypothermia to begin.
There are a few things that can affect our body’s ability to maintain a normal temperature. Tobacco is the first. Nicotine constricts the blood vessels which inhibits the body’s attempt to send bursts of heated blood to the extremities. Alcohol also adds to the body losing temperature, but its biggest effect is making errors in judgement. Numerous hypothermic deaths have been attributed to poor judgement. And finally, aspirin and ibuprofen, when used in a cold environment, can affect the ability to shiver, which is how the body creates heat.
The signs of hypothermia can be hard to see. Some of the more common signs are confusion, slowed or slurred speech, a change in behavior, and a change in how they look. Now that we know the signs what can we do to prevent it? Proper clothing is vital. Tight clothing can keep your blood from flowing freely and lead to heat loss. Wear layers of loose clothing. The layers will trap warm air between them. If you get wet change your clothes as soon as possible. If you see signs of hypothermia in a friend or co-worker get them to a warm place as quickly as you can. Mild hypothermia is much easier to treat than severe and mild hypothermia left unchecked will become severe.
As we enter this winter season, remember it’s not will hypothermia present itself it’s when. If we take preventative measures we can work in and enjoy the outdoors without putting ourselves at risk.
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Regional Safety Coordinator
Municipal Electric Utilities of Wisconsin (www.meuw.org), a state association of 82 electric utilities, is seeking a Regional Safety Coordinator to assist five MEUW member communities in eastern Wisconsin (Kaukauna, Menasha, Plymouth, Shawano and Two Rivers) implement an overall safety and regulatory compliance program. This position is responsible to provide job safety and regulatory compliance training for electric line workers and other municipal employees (e.g., police, fire, public works), and involves travel to the five communities. Successful candidate will have a minimum of three years of practical experience in the safety and regulatory compliance field, a college degree is preferred, must be willing and able to travel in eastern Wisconsin, must have excellent interpersonal communication and training skills, computer skills, familiarity with OSHA/DCOMM 32 and WI DOT regulations and requisite record keeping requirements. Please send resume and salary history to: David J. Benforado, Executive Director, MEUW, 725 Lois Drive, Sun Prairie, WI 53590; or by e-mail (dbenforado@meuw.org). Deadline is Mon., Nov. 17, 2003.
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Underground & Overhead Design Seminar Planned
The very popular MEUW Underground & Overhead Design Seminar will be held again December 9-10, 2003 at the Radisson Paper Valley Hotel in Appleton. After last year’s seminar in the Dells, many stated it was so beneficial they would like to attend the seminar again or send other personnel from their utility. Linemen, Foremen and Superintendents would benefit from attending this seminar, which will be taught by Dave Krause of Short, Elliot, Hendrickson, Inc. (SEH). Dave has the unique perspective of both a lineman who has built and maintained distribution systems, and an engineer who has designed systems. While you won’t leave this seminar being able to engineer your own distribution system, you will learn construction standards and why it is important to follow them.
The first day will focus on underground distribution systems. The overhead section will begin at the end of day one and wrap up on day two, followed by an introduction to new technologies and a question-and-answer session.
The cost of the seminar is $180 per attendee. However, if your utility sends two or more, the cost will be $160 per attendee. Similar seminars are held at the University of Wisconsin for $995, so you can see this seminar is an excellent value for your utility. The registration deadline is November 14, 2003. You can access registration materials on our website at www.meuw.org. Go to “Major Events and Meetings” and click on the link under the December 9-10 listing, or call MEUW Office Manager Linda Olson at (608) 837-2263. Your registration must be received by the deadline to be eligible for the $20 multiple registration discount and to be guaranteed participation in the workshop. The fee covers the cost of the seminar including: continental breakfast, breaks and lunch at the Radisson Paper Valley Hotel. Dinner will not be provided, but there are many great restaurants in the Appleton area.
For those who wish to stay overnight, we have reserved a block of rooms ($79 a night, single or double rate) for December 8-9, 2003. Please contact the Radisson directly to make your hotel reservations; phone 800-242-3499, or 920-733-9220. Be sure to ask for the “MEUW” block. Hotel Reservations must be made by November 10, 2002.
If you have any questions regarding this seminar contact MEUW Safety Director Steve Hedden by phone 608-837-2263 or by e-mail
shedden@meuw.org.
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A Rousing Public Power Week in Wisconsin Rapids
Rick Skifton, General Manager of Wisconsin Rapids Water Works & Lighting Commission, knew on Monday, October 6 that Public Power Week (October 5-11, 2003) was off to a rousing start. “I looked out my office window...and saw a quite a group of customers waiting for our office to open. They didn't have a noose so I figured it was because of our advertising of Public Power Week.”
“We gave away three energy efficient appliances: a refrigerator, a washer and a dryer,” Skifton explained. “We also had many other ‘giveaways’, night lights, bag clips, pencils, energy efficient light bulbs, energy savings brochures, coffee, cookies, juice drinks, hard hats and coloring books for the kids. Our office opens at 7:00 a.m. and closes at 4:30 p.m. and we had to lock the doors at 4:45 p.m. because the stream kept coming. It was by far the most customers we have seen in one day in our entire history.”
The first prize of a Sears energy efficient washer and electric dryer was won by Brenda Dickson, who is absolutely thrilled due to the fact that they have just purchased a new house. According to WW&LC employee Mary Rothermel: “When she came in four out of the five days that customers could register, she would tell us how nice the set would look in her new laundry room and how she sure wished she could win it (wishes sometimes do come true)!”
Rothermel continued, “We included [a] ‘HELP US CELEBRATE’ page in all our bills to our customers the month before and we advertised on the radio and in the paper for two weeks prior to the event. We hired two temporary people to staff the display and to assist the customers during the week.”
Congratulations to Wisconsin Rapids on their tremendously successful Public Power Week celebration!
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Interest in Public Power is Growing in Racine, WI
Opposition to WE-Energies’ “Power the Future” plan to expand a coalfired power plant has helped fuel a grass roots drive for public power in Racine, WI. A citizens’ group, the Greater Racine Bright Public Power Initiative committee, wants to raise $100,000 for a study of the feasibility of creating a public power utility, said Racine Alderman Pete Karas. Racine is located in the southeast corner of the state, with a 2002 population of 81,440.
The Racine Board of Aldermen passed a resolution earlier this year opposing We Energies’ plan to build a new coal plant in Oak Creek in southeastern Wisconsin, Karas told APPA’s Public Power Daily. The proposed expansion of the coal plant “has been a hot issue in the area and has created a lot of awareness of energy issues,” he said.
“I think people in Racine really want renewable energy,” Karas said. “We’d like to have local control so we can develop renewables. We don’t believe the investorowned utilities in general have done a good job with that.”
We Energies charges its residential customers 7.4 cents per kWh, Karas said, while the nearby public power utility in Oconomowoc charges 5.5 cents. “What we think we can do is take a small portion of the savings and invest it in conservation and renewables,” he said.
[APPA’s Public Power Daily, 10/23/03]
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