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State deregulation prospects dim House puts off open-market power law to 2003; Patridge, Bates cite California woes as reasons By JESSICA SMITH After months of debate, the state House of Representatives decided Thursday what to do about Oregon's plan to deregulate the electricity market: Delay it. With a 49-10 vote, the House voted to postpone deregulation until March 31, 2003. The law, which would allow large energy consumers to buy power on the open market, was to go into effect Oct. 1. "This was a hard-fought fight to get the bill out and get the delay vote," said Rep. Rob Patridge, R-Medford, who introduced the bill to postpone deregulation. "But we got it." It was unclear late Thursday whether the bill would move immediately to the Senate. A Hillsboro legislator said he may ask the House to reconsider Thursday's vote. Rep. Jim Hill, a Republican, said he believes an 18-month delay is too long. If the postponement holds, lawmakers would revisit the issue in their next session, which begins in January 2003. Deregulation backers and skeptics have been arguing for months about what to do with Senate Bill 1149, which the 1999 Legislature approved. That bill, which sought to deregulate power prices for large businesses, would have no effect on rates for homes and small businesses. Rep. Alan Bates, who voted for the postponement along with Southern Oregon legislators Susan Morgan and Cherryl Walker, said he was disappointed that the delay would mean deferring implementation of a 3 percent tax that would finance power conservation programs. "I had to make a decision of whether to say 'no' to the whole bill," said Bates, D-Eagle Point. "I had to ask myself 'what is the most important thing?' For me, it was a chance to kill deregulation for two years." Patridge, Bates and other supporters of the delay say California's failed deregulation plan, combined with uncertain hydropower supplies in the Northwest, could lead to rising power prices. That's enough reason to postpone deregulation, they argue. But deregulation supporters say the Oregon law doesn't contain the flaws that contributed to California's energy problems, including provisions that require utilities to sell off power plants. Thursday's move to delay the change in rules won't hold down rates and will only make matters worse, according to deregulation proponents. Rep. Bill Witt, R-Portland, said the problem is a lack of supply to meet growing demand. He also says the measure "chills investment" in new power generation. Supporters of the delay, however, say the state is taking steps to increase power production with a bill that streamlines the process to create temporary generating plants. Gov. John Kitzhaber has signed that bill. Reach reporter Jessica Smith at 776-4481, or e-mail [email protected] . The Associated Press contributed to this story. Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.