THE WHITE HOUSE AT WORK



Wednesday, March 25, 1998

PRESIDENT CLINTON:
A PLAN FOR COMPREHENSIVE ELECTRICITY COMPETITION

Today Secretary Pena, National Economic Council Director Gene Sperling, and Council for Environmental Quality Director Katie McGinty introduce the Administration's Comprehensive Electricity Competition Plan that will save consumers $20 billion a year. The plan combines those economic savings with environmental benefits -- both saving the typical family of four over $230 per year and reducing greenhouse gas emissions.

The electricity sector is our nation's most capital intensive industry, holding assets with a book value in 1994 of close to $700 billion. Sales in 1996 were $212 billion. Economic forces are now forging a new era in electricity policy, where electricity prices will be determined primarily by the market rather than by regulation. Under this new system, often called "retail choice," consumers are allowed to choose their electricity supplier.

The Administration's Plan. The plan is built upon the principle that customers should be allowed to benefit from the ability to choose their own electricity supplier. It advances the legislative changes necessary to provide customer choice, enhance competition, and diversify generation sources. Key components of the plan include:



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