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Here's what Senate Bill 1149 does Framework for the deregulation of electric power in Oregon, as provided in Senate Bill 1149: Commercial and industrial customers : They may choose their own power supplier by Oct. 1, 2001, in areas now served by private utilities such as Pacific Power and Portland General Electric. Residential customers : The Public Utility Commission will report to the 2003 Legislature about choices for customers in those areas. They must be offered a regulated rate similar to what they have now, a rate based on a significant amount of "green power" from renewable sources, or a rate that would rise and fall with wholesale power prices. Public purposes : Private utilities would have to invest 3 percent of their income from retail customers to promote energy conservation, develop renewable sources of energy and weatherize low-income households. This fee would be linked to the start of direct access to power suppliers and end in 10 years. Low-income assistance : Utilities will collect a charge from retail customers that will help pay utility bills of low-income households. The statewide limit is $12 million; customer limit, $500. Public utilities : Such utilities, including the city of Ashland, can decide on their own whether and how to offer direct access to power suppliers. Senate OKs power deregulation Business customers could choose supplier By PETER WONG SALEM -- Despite a strong denunciation from Sen. Lenn Hannon, who called it "pure old-fashioned greed," the Senate approved a bill Tuesday to let Oregon's business and industrial customers seek their own power suppliers. The bill, which the Senate sent to the House on an 18-11 vote, would open up competition for residential customers after 2003. Supporters say it could lead to lower prices. Opponents such as Hannon, a Republican from Ashland, say it guarantees lower prices only for large power users. Senate Bill 1149 would open up competition in the areas served by Pacific Power and Portland General Electric, which cover about 75 percent of Oregon's customers, starting Oct. 1, 2001. "This is definitely a go-slow approach that allows us to look at the problems and correct them as they may arise," said Sen. Joan Dukes, D-Astoria, one of the bill's floor managers. Portland General Electric, which Enron Corp. of Houston bought in 1997, has moved toward its own form of deregulation. PacifiCorp, parent of Pacific Power that serves most of Southern Oregon, opposes the bill because it fears that residential rates could increase by 8 percent to 10 percent. With its broad exemption of public utilities such as Ashland's municipal utility, Hannon said the bill effectively applies only to Oregon's one private utility that opposes it. "I have to go home and tell my constituents that not only did we give property tax relief to large corporations as a result of Measure 5 in 1990, we now will give them cheaper power at your expense," Hannon said. Pacific Power's industrial customers help subsidize residential customers, something which one of its vice presidents says would be lost in deregulation. Because it operates in six states, it cannot easily separate its generating capacity from its distribution system. Opposition by public utilities helped kill Oregon's deregulation legislation in a House committee without a vote in 1997. But public utilities are neutral on the Senate bill, which is backed by Associated Oregon Industries, the state's largest business lobbying organization, and consumer and environmental groups. For residential customers, the bill requires the Public Utility Commission to study potential effects of deregulation and report to the 2003 Legislature. Utilities could proceed when residential customers can choose from a regulated rate similar to what they receive now, a rate based on significant "green power" from renewable sources, or a rate linked to the rise and fall of wholesale power prices. The bill also would create a fund to help low-income customers pay utility bills. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA