COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

ALFONSE M. D'AMATO, New York, Chairman

PHIL GRAMM, Texas
RICHARD C. SHELBY, Alabama
CONNIE MACK, Florida

LAUCH FAIRCLOTH, North Carolina
ROBERT F. BENNETT, Utah
ROD GRAMS, Minnesota
WAYNE ALLARD, Colorado
MICHAEL B. ENZI, Wyoming
CHUCK HAGEL, Nebraska

PAUL S. SARBANES, Maryland
CHRISTOPHER J. DODD, Connecticut
JOHN F. KERRY, Massachusetts

RICHARD H. BRYAN, Nevada
BARBARA BOXER, California

CAROL MOSELEY-BRAUN, Illinois
TIM JOHNSON, South Dakota
JACK REED, Rhode Island

HOWARD A. MENELL, Staff Director
PHILIP E. BECHTEL, Chief Counsel

STEVEN B. HARRIS, Democratic Staff Director and Chief Counsel
LAURA S. UNGER, Counsel

HELENA K. GRANNIS, Professional Staff Member
MITCHELL FEUER, Democratic Counsel

ANDREW LOWENTHAL, Democratic Professional Staff Member
GEORGE E. WHITTLE, Editor

(II)

CONTENTS

TUESDAY, APRIL 29, 1997

Page

Opening statement of Chairman D'Amato

Prepared statement.....................

Opening statements, comments, or prepared statements of:

Senator Reed

1

48

5

5

48

12

13

14

Frank H. Murkowski, a U.S. Senator from the State of Alaska and Chairman

of the Senate Committee on Energy and Natural Resources

Prepared statement

Isaac C. Hunt, Jr., Commissioner, U.S. Securities and Exchange Commission

Prepared statement

2

50

6

52

53

53

53

54

55

55

Response to written questions of Senator D'Amato

Susan Tomasky, General Counsel, Federal Energy Regulatory Commission

Prepared statement........

Response to written questions of Senator D'Amato

Robert W. Gee, Commissioner, Public Utility Commission of Texas, on behalf

of the National Association of Regulatory Utility Commissioners

Suggested Improvements to S. 621-The Public Utility Holding Com-

pany Act of 1997 ........

Conclusion .......

Resolution on Legislation to Change the Public Utility Holding Com-

pany Act of 1935 .......

Response to written questions of Senator D'Amato

(III)

Page

Ronald J. Tanski, Vice President and Controller, National Fuel Gas Distribu-

tion Corporation, Buffalo, New York ......

Prepared statement ........

Ferd C. (Buzzy) Meyer, Jr., Senior Vice President and General Counsel,

Central and South West Corporation, Dallas, Texas

Prepared statement

Les E. LoBaugh, Jr., Vice President, General Counsel, and Chief Environ-

mental Officer, Pacific Enterprises, Los Angeles, California

Prepared statement

Should Conditional PUHCA Repeal be a Stand-Alone Issue?

What Market Power Issues Are Raised by PUHCA Repeal?

Consumer Protection Questions

Utility Diversification

Conclusion ....

Dr. Mark N. Cooper, Director of Research, Consumer Federation of America

Prepared statement

PUHCA Provides Essential Consumer Protections

Premature Repeal of PUHCA Would Expose Consumers to Abusive

Transactions

Premature Repeal of PUHCA Would Make Regulation of Abusive

Corporate Transactions and Risky Financial Practices More Dif-

ficult....

Premature Repeal of PUHCA Would Make the Introduction of Com-

petition into the Electric Utility Industry More Difficult.......

The Alleged Inefficiencies Created by PUHCA Regulation Are Vastly

Overstated......

The Introduction of Effective Competition into the Industry Should

Come Before Repeal of PUHCA

71

72

73

74

31

74

75

Prepared statement

Larry A. Frimerman, Federal Liaison, Ohio Consumers' Counsel, Columbus,

Ohio, on behalf of the National Association of State Utility Consumer

Advocates ........

33

78

78

78

80

81

272

ADDITIONAL MATERIAL SUPPLIED FOR THE RECORD

Letter from Senator Dale Bumpers to Chairman Alfonse M. D'Amato, dated

April 29, 1997 .....

277

Statement of the Chemical Manufacturers Association on the Public Utility

Holding Company Act of 1935 .............

280

Statement of the Electricity Consumers Resource Council [ELCON]

286

S. 621

297