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RETAIL ELECTRIC COMPETITION "SLEEPING GIANT" OF CONSUMER ISSUES ENRON CHAIRMAN LAY ESTIMATES ANNUAL SAVINGS AT $60 TO $80 BILLION
FOR IMMEDIATE RELEASE: Wednesday, May 15, 1996
Washington, D.C. --
With annual savings for homes and businesses of $60 to $80 billion at stake, bringing retail competition to the electric utility industry is the "sleeping giant" of consumer issues according to Kenneth L. Lay, chairman and CEO of Enron Corp., one of the world's largest integrated natural gas companies and the largest non-regulated marketer of electricity in the U.S.
Lay's remarks came before a hearing of the Energy and Power Subcommittee of the House Commerce Committee. Subcommittee Chair Dan Schaefer (R-CO) is expected shortly to introduce a bill opening the retail electricity market to competition. Wednesday's hearing was the last in a series leading up to the anticipated introduction of legislation.
Lay described the savings as "an across-the-board annual tax cut for Americans," adding this would be "equivalent to one of the largest tax cuts in U. S. history." Lay noted that "lower electric bills for the military, post office, and other major government users will benefit taxpayers" and that lower utility costs will help American industry compete in the international marketplace.
Citing his experience with natural gas deregulation, Lay discounted the arguments made in opposition to electric customer choice.
"I still remember some of the protests against 'open access' competition for the interstate gas market a decade ago," Lay said. "Too risky; bad for consumers; reliability will suffer; it won't work."
The reality, Lay reports, is:
- Residential gas prices have dropped 28 percent in real terms.
- Consumers have saved more than $30 billion annually since 1985.
- Reliability is improved, even during the abnormally cold winter of 1995-96.
"Above all," Lay testified, "these changes taught us that consumers want lower prices, want new products and services and want the ability to choose their suppliers."
Enron Corp., one of the world's largest integrated natural gas companies with approximately $13 billion in assets, operates the second largest natural gas transmission system in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; produces and markets natural gas liquids worldwide; owns 60 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns 52 percent of Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines in emerging markets; and is one of the largest independent developers and producers of electricity in the world. Enron Corp. is traded under the ticker symbol, "ENE."
For additional information please contact:
Carol Hensley
(713) 853-6498
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