Illinois
COMMENTRY

Co-op customers and federal electricity deregulation legislation

Members of electric cooperatives across the State of Illinois should not see any adverse or negative changes if the current electric deregulation legislation pending before Congress is passed.

As you may have read here in the pages of Illinois Country Living, Congress is considering legislation that would deregulate the sale of electricity. This effort should prove beneficial to all consumers. The effort is to continue to provide reliable electric service at lower costs.

Congressman John Shimkus

As a member of the U. S. House Commerce Committee and its Subcommittee on Energy and Power, I have participated in many hearings and meetings on the issue of electric deregulation. I have always supported two issues: 1) that the deregulation law in the State of Illinois be "grandfathered" by the federal legislation and 2) that cooperatives, municipalities, and small utility companies be treated fairly.

Without getting too technical, here are five provisions in the federal electric deregulation bill that are pro-cooperative:

1. Cooperatives are not defined as "public utilities" under the federal law... thus, preserving their current status and exempting cooperatives from some regulatory burdens.

2. Cooperatives are not required to file comparability tariffs ... thus, lessening the bureaucratic paperwork for cooperatives.

3. Cooperatives receive preferential treatment for some income when determining their tax-exempt status ... thus, giving cooperatives an incentive to open up their membership to competition without possible negative consequences.

4. Cooperatives do not need federal review for mergers and asset sales ... thus, preserving the current status of cooperatives.

5. Cooperatives may diversify according to their state organization laws ... thus, preserving the current status of cooperatives.

Many of these provisions do not make changes, but allow cooperatives to maintain their current status. This is, however, a win for cooperatives as many other industries are fighting against cooperatives.

I would also like to take this opportunity to discuss a couple of other issues affecting rural America that we have been and will be dealing with in Washington this year.

The federal budget is balanced, and it is being balanced on its own - not on the back of Social Security. In the last two federal budgets, Congress and the president have agreed to spending plans that protect 100 percent of Social Security funds, while providing the necessary funding for other government programs.

Some programs that received special attention include education, agriculture, and defense.

Our nation's farmers have faced a difficult time in the last several years.. .low commodity prices, drought, storm damage and low livestock prices. Congress has provided emergency financial relief, but improved exports and agricultural insurance improvements are necessary to bring true relief to our family farmers.

Our country's service men and women have also faced financial hardships, which is a national shame. Last year, we were able to give a substantial cost of living increase to those serving in our military, but we need to make certain that no service family needs food stamps to survive.

Our nation's classrooms will also see relief. Funding for additional teachers has been provided by the federal government to aid local school districts in their duties. We have fought in Congress to get more of that money directly in the hands of local administrators who know firsthand the needs of their students... whether that be new teachers, a new building, or more books and computers.

We deal with many issues in Washington, but rest assured that I and many other Members of Congress are working on behalf of rural Illinoisans.

U.S. Rep. John Shimkus (R-Collinsville) was first elected to Congress in 1996. He was re-elected in 1998 with 61 percent of the vote. He serves on the House Commerce Committee as well as its subcommittees on Telecommunications, Trade and Consumer Protection; Finance and Hazardous Materials; and Energy and Power.

The opinions and views of guest commentators are their own and may not represent those of the Association of Illinois Electric Cooperatives or the electric co-ops of Illinois.

4 ILLINOIS COUNTRY LIVING MARCH 2000