Wednesday, May 21, 1997

Electric cooperatives say deregulation may not help consumers

By J.T. Smith / Reporter-News

"Deregulation" is a popular buzzword nowadays.

But it may not be an instant savings to consumers when it comes to electricity in rural areas that are served by electric cooperatives.

Texas' electric cooperatives contend that a proposal to deregulate the electric utility industry by 2001 may not be in the best interest of electric cooperative consumers.

The co-ops are concerned that several key elements of the draft bill are not fully understood, and they say that more time is needed to review them, said Mike Williams, president of the Texas Electric Cooperatives (TEC).

TEC is a statewide association that represents the 75 distribution cooperatives and also 11 generation and transmission cooperatives.

"Dramatic changes are being proposed that will impact how the electric industry in Texas operates," Williams said. "We believe that this proposal needs more time to be fully understood, and to allow for thoughtful examination by legislators and the public to assure that these suggested changes are indeed in the public interest."

Unfortunately, the latest proposal calling for deregulation does not necessarily assure lower electric rates or reliable service for co-op members, Williams said.

Electric cooperatives serve about 3 million consumers in 244 of Texas' 254 counties - primarily in rural and suburban areas.

It is not clear that deregulation of other industries has benefited rural Texans, Williams noted.

Williams said TEC is willing to support positive change, but the benefits must be clear.

"We continue to support any industry restructuring that benefits all customers of electric cooperatives in Texas," Williams said.

Less than half of nation's cotton planted

As of May 11, about 44 percent of the 1997 U.S. cotton crop had been planted. That's behind the five-year average of 51 percent by that date.

Abnormally cool weather and almost continual rainfall has been blamed for the planting falling behind schedule in many areas.

Texas had planted only 27 percent of its expected acreage, compared with 32 percent on average.

Nevertheless, the timely spring rains paved the way for what is still a fine wheat crop in parts of the Abilene region.

In addition, cattle - the No. 1 commodity of the Abilene area - are enjoying green pastures and ample water.

Cattle prices at area auction barns also continue extremely strong.