SPECIAL ALERT REQUEST

The following alert is issued jointly by IRENEW (Iowa Renewable Energy
Association), an organization member of the Iowa Environmental Council,
and the Iowa SEED Coalition (Sustainable Energy for Economic Development)
to which the Council belongs.

HF 740, ELECTRIC UTILITY RESTRUCTURING (Formerly HSB 218). Deregulates and
restructures electric utilities.  Requires electric utilities to unbundle
generation, delivery and retail service rates.  The Utilities Board can
regulate the delivery system operations, rates, and terms and coordinate
consumer education.  Requires 2% of a licenseeÕs energy portfolio be from
renewable sources by 2006 (this is down from the current goal of 10%).
Stranded costs may be charged based on lost revenues. Several environmental
groups and DNR are working to improve renewable energy provisions and
energy conservation requirements. DNR has met with both Republicans and
Democrats on proposed DNR amendment.  Eligible for H debate.

URGENT ACTION ALERT -- ELECTRIC UTILITY DEREGULATION LEGISLATION

House File 740 or the "Electric Choice and Competition Act," has
essentially no adequate environmental protection provisions and, in effect,
would roll back renewable-energy provisions. The following are some basic
talking points you can use with legislators:

The state policy goal for renewable energy, set in 1990 by the DNR, is 10%
renewable power by 2015. This is called a renewable portfolio standard
(RPS) and means a certain percentage of a company's generating mix must
come from renewable sources. We currently have about 5% renewable power if
calculated in the manner prescribed in the bill. The concern is that this
bill limits the percentage of generation at 2% of capacity after 2006. This
provision would stifle renewable energy development, which would mean the
loss of potential jobs and revenue for Iowa, as well as be harmful to the
environment.

If customers are truly given "choice" in this act, one of the choices
should be to stay with the same bundled, rate-regulated service they have
today. The problem is that the bill ends this "choice" on January 1, 2006,
unless the Utilities Board determines it should continue.

Energy efficiency programs become strictly voluntary under this
legislation. There must be secure, mandated funding for energy efficiency
and an independent state agency assigned to administer the funds and
programs.  Funds should be collected through a charge that is equally
assessed to all customers.

To e-mail Iowa legislators, use the first letter of the first name,
followed by the first six letters of the last name, then @legis.state.ia.us
 For example, Rep. Ron Corbett's e-mail address is
[log in to unmask]

The House Switchboard # is 515/281-3221 and the Senate Switchboard # is
515/281-3371.

Mail should be addressed as follows:
        The Honorable _____________, State Senator (or Representative)
        Iowa Capitol
        Des Moines, Iowa 50319

Any time you contact an elected official, remember to include your name and
address, so they can respond to your concern.

For more information about this special alert, contact Lisa Davis Cook,
Program Organizer, Iowa Citizen Action Network and Iowa SEED Coordinator,
3520 Beaver Avenue, Suite E, Des Moines, IA 50310 (515) 277-5077 ext. 13;
Fax: (515) 277-8003; or [log in to unmask] .

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