It will allow consumers to choose more environmentally benign fuel sources, such as renewables. Any federal action should encourage consistent standards for disclosure, but a federal mandate for uniform standards or a specific reporting format is not needed at this early stage of market development. States and markets should be given adequate time to cooperate in developing consistent disclosure requirements. States' authority to mitigate stranded costs, as well as provide for recovery mechanisms in state restructuring programs, must not be preempted by federal legislation. Any federal legislation should reaffirm the states' right to calculate and determine the appropriate recovery mechanism for stranded costs including non-bypassable charges to generate monies for recovery.
Renewable energy offers many public benefits and contributes to the diversification of fuels.
The Northeast states, in their restructuring programs, have embraced a variety of means to encourage renewable energy in the fuel mix. The federal government should maintain its presence in research and development for renewable energy. Any federal legislation should recognize states' authority to incorporate renewable energy into state restructuring plans, encourage state action to support renewable energy, and clarify states' authority over net metering programs. Public benefits programs remain an important tool of public policy in a restructured electric industry. While a national public benefits trust fund is one means for the federal government to encourage or enhance state-designed and implemented programs, such a federal fund should not preempt states authority to design or set the appropriate funding level for such programs.