The Administration's Comprehensive Electricity Competition Plan will provide customer choice by 2003, but will allow states to opt out of competition if they believe that their consumers would be better off under the status quo. Replacing a regulated monopoly system with competition will also encourage efficiency, bring new products and services, strengthen reliability of service and protect consumers. We will bring America's electric industry into the modern era and save consumers money. Competitive forces will also create a more efficient, leaner and cleaner industry.
Federal legislation is needed to enable states to implement retail competition effectively.
And only federal legislation can modify or repeal outdated federal laws, cover regional electricity markets, address concerns about market power, ensure that the interstate electricity grid is reliable, and establish uniform standards so that all Americans are receiving the same information about their utility suppliers. We want to work with Congress to get comprehensive legislation that benefits all consumers. This will give states the freedom to structure retail competition that works best for their citizens. Supports stranded cost recovery for utilities that might not otherwise be able to recover the costs of certain past investments that are no longer economic in the low-cost competitive market. The plan encourages states to provide for recovery of stranded costs, supporting their fundamental authority in these matters.