Monday December 12 2005


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Did monopoly lobby strike
big PR hit via Katrina?

Let's say you favor monopoly and you're looking for ways to get good publicity.
     How about the hurricanes?
     Hurricanes?
     Did not the electric companies do a grand job in getting power to the people after the storm?
     You could get Mississippi Gov Haley Barbour, R-Miss, to talk about the great jobs the utilities did after Katrina.
     And so they did at the Phoenix Hotel on Capital Hill. The theme, that integrated utilities can best be depended on in times of crisis, was soft-pedaled but unmistakable.
     We asked former Sen John Breaux about the tie between the storm and competition.
     "The purpose this morning was to look at the largest national disaster we had and how did the public utility company respond?"
     In Breaux's mind "the fully integrated companies ... the traditional full-service companies were able to do the job that they did because they were in fact comprehensive in generation and transmission and distribution and they're part of their communities and they were there as fellow citizens."
     As evidence, Breaux added, they were able to find the civic center of New Orleans before FEMA found it.
     We heard later from Sen Don Nickles who retired recently from the Senate and speaks for COMPETE. He praised the utilities too.
     "Electric companies, regardless of whether they operate in competitive markets or in a monopoly region, take their commitment to their communities seriously," said Nickles.
     "Competitive companies have a proud history of working quickly and effectively to restore power to the people and businesses they serve," Nickles added.
     It was a theme built upon by William Brier, EEI vice president for policy, who stressed how the industry responds together via mutual assistance programs bringing in crews from around the nation in times of need.
     Joel Molina who runs COMPETE was perplexed at the concept that if the hurricane had hit Virginia instead of Louisiana that the recovery might be slower because Virginia is in PJM and that's served by a variety of types of generation such as from Dominion.
     We were perplexed at the thought that the utilities were widely praised by the panelists but Entergy, the main utility, wasn't there and isn't a member of the Community Power Alliance.
     The CPA's kit included sheets on each of the CPA members including SRP, the Salt River Project in Phoenix.
     SRP is against competition but was not hit by the hurricanes.
     Why wasn't Entergy there?
     They hadn't been asked, we were told. We suspect Entergy is a couple decades ahead of the CPA folk on competition.
     Something worth worrying about?
     We don't know today how many people will see Nickles' views. The room at the Phoenix was packed when Gov Barbour was talking.
     Previously he had served as CEO of Barbour, Griffiths & Rogers, a company Fortune magazine has called the nation's top lobbying firm.
     Originally published in Restructuring Today on December 8, 2005

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