For immediate release           For more information
Monday, 18 June 2001            Joe Shannahan, 515-281-0173

Vilsack: GOP bill would lock in higher electric bills for consumers

DES MOINES - Concerned that consumers may be forced to pay unnecessarily

high electric utility bills, Governor Tom Vilsack today urged Republican

lawmakers to drop the language relating to power purchase contracts from

legislation that encourages additional electric power generation in
Iowa.
Iowa lawmakers are scheduled to return to Des Moines on Tuesday for a
special legislative session on redistricting.

"The proposal involving power purchase contracts risks locking in higher

electricity bills for Iowa's consumers for the future," Vilsack said.
"It
removes market forces from this process by locking in guaranteed profits
for
electric utilities but locks out potential rate reductions for
consumers.
The bill in its present form is simply not fair to consumers."

Building additional electric generation in Iowa will help meet the
immediate
electricity needs of consumers and create hundreds of good paying jobs.
There is broad support for removing barriers to build rate-regulated
electric generation facilities in Iowa and for allowing Iowa's municipal

utilities to join together to finance new plants.  However, there is no
consensus on other aspects of the legislative debate that include
renewable
energy, energy efficiency programs, and power purchase contracts.

"In the best interests of Iowa consumers, I am asking legislators to
pass a
simple bill that nearly everyone agrees is needed," Vilsack said.
"Consumers, utilities, low-income advocates, business, labor, and
environmental interests agree that lawmakers should approve a bill that
makes it easier to build new rate-regulated power plants in Iowa.
Items
not directly related to increased generation, specifically power
purchase
contracts, should be put on hold until next session so our energy task
force
can make recommendations for Iowa's future energy needs."

"A simple bill to remove some of the barriers to construct local power
generation plants, including joint financing by municipal utilities, can
be
quickly passed in the special session with the support of consumers and
the
utility industry," Vilsack said.  "This will allow construction to begin

immediately and Iowans can be more assured that adequate supplies of
local
power will be available in the future."

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