It is our job to make sure that the transition to competition occurs in a manner that provides the greatest benefits with the fewest obstacles. States are leading the way, and they should be. But federal action is essential if these restructuring proposals are to succeed. Electrons don't respect borders. Power lines cross state lines.
Electricity markets are increasingly regional and multi-regional.
Actions in one state can and do affect consumers in another. States alone can't ensure that regional power and transmission markets are efficient and competitive, and states alone can't guarantee that the interstate power grid is reliable. States can't lift the federal statutes that serve as a barrier to competition, nor can they cultivate competition in the regions served by the Power Marketing Administrations and the Tennessee Valley Authority. The legislation I recently submitted to Congress strikes an appropriate balance. It encourages states to maintain their leadership on competition programs, and sweeps aside the federal roadblocks that might impede their progress.