13296 EXTENSIONS OF REMARKS June 29, 2000 and will make up the difference out of general sponsibilities to the public that provides this Jewish Center and its Men’s Club, the B’nai funds. None of our infrastructure projects will benefit. Every other nonprofit involved in elec- B’rith and Humboldt-Ezra Masonic Lodge 114, be affected by FETRA. tioneering such as parties, PACs and cam- all in Clifton. This tax relief is long overdue for American paign committees discloses to the Federal A graduate of Passaic High School in 1938, consumers. To ensure they get the benefit of Election Commission. There is no justification Aaron received a Bachelor of Science Degree this tax relief, FETRA directs the Comptroller for making an exception for these 527 organi- in Education from Newark State College, and of the United States to report to Congress on zations. In return for the public’s largesse, Master’s degrees in Administration and Super- whether the tax cut is being passed through to these organizations should at least be re- vision from Montclair State College (now Uni- consumers. Additionally, the act requires the quired to disclose their existence, substantial versity), in Guidance from Rutgers University, Administration to prepare a report on changes contributors and substantial expenditures.’’ and in Secondary School Administration from in the prices of gasoline, diesel and other fuels The legislation we passed requires ‘‘527’’ Teachers College at Columbia University. over the previous 12 months, and the impact groups to disclose who they are, where they Aaron is survived by his wife, the former on prices of the reformulated gasoline man- get their money, and how they spend it. It Dorothy Leibowitz, a daughter, Doretta date, and the feasibility and appropriateness does not adequately cover political activities Halpern of Cedar Grove and his nephew Jack of maintaining the reformulated fuel mandate. during this election cycle, but it is a good start. Birnberg, Chairman of the Board of Waldorf Mr. Speaker, The American people are look- By closing this loophole, we are beginning Group, Inc. of Little Falls, New Jersey. ing toward Congress for leadership on this to repair the damage that our current cam- Mr. Speaker, I ask that you join our col- issue. I agree that we must work on long-term paign system has done to public trust in gov- leagues, Aaron’s family and friends, Clifton and medium-term solutions to high fuel prices, ernment. This could be the first meaningful High School, the Clifton Board of Education, but FETRA is where we should start. campaign finance reform passed in Congress the City of Clifton and me in recognizing the f in many years. Let’s lift this curtain of secrecy outstanding and invaluable service to the com- that has shrouded elections for too long. munity of Aaron Halpern. AMENDING INTERNAL REVENUE f CODE TO REQUIRE 527 ORGANIZA- f TIONS TO DISCLOSE POLITICAL TRIBUTE TO AARON HALPERN ELECTRIC UTILITY INDUSTRY ACTIVITIES HON. BILL PASCRELL, JR. SPEECH OF OF NEW JERSEY HON. ED BRYANT OF TENNESSEE IN THE HOUSE OF REPRESENTATIVES HON. EARL BLUMENAUER IN THE HOUSE OF REPRESENTATIVES OF OREGON Wednesday, June 28, 2000 Wednesday, June 28, 2000 IN THE HOUSE OF REPRESENTATIVES Mr. PASCRELL. Mr. Speaker, I would like to Tuesday, June 27, 2000 call to your attention to the deeds of a person Mr. BRYANT. Mr. Speaker, at a time when I was proud to call my friend, Aaron Halpern this Congress is beginning the debate over the Mr. BLUMENAUER. Mr. Speaker, the of Clifton, New Jersey, who was remembered future of our electric utility industry, I call to House has finally done something about the on Thursday, June 1, 2000 because of his the attention of my colleagues an article in the shadowy political action committees organized many years of service and leadership. He is current edition of Forum For Applied Research under Section 527 of the tax code which can deserving of this memorial, for he had a long and Public Policy. The article is entitled ‘‘Elec- hide their donors, activities, and even their ex- history of caring, generosity and commitment tricity: Lifeline or Bottom Line?’’, and it is by istence from public view. Sunshine is the best to others. Terry Boston, Executive Vice President of the disinfectant and now some light will be shed Aaron was recognized for his many years of Tennessee Valley Authority’s Transmission on these stealth PACs that have been flying leadership in Clifton, which I have been hon- and Power Supply Group. Mr. Boston over- under the radar to avoid detection. ored to represent in Congress since 1997, and sees TVA’s 17,000 miles of transmission lines, Very early this morning, we voted to require so it is only fitting that these words are immor- one of the largest transmission systems in the these tax-exempt groups to disclose their ac- talized in the annals of this greatest of all free- country. tivities. The Senate adopted very similar legis- ly elected bodies. The article largely embodies information I lation earlier this month. It has been perfectly Mr. Halpern worked for the Clifton School received from Mr. Boston in a briefing earlier within the rights of anyone to give unlimited System for 43 years, beginning as a high this month. The news media has given consid- sums of money aimed at influencing American school teacher and guidance counselor. He erable coverage recently to the expected de- elections with no limits, no restrictions, and became the principal of School 7 in 1959 and mands on our electric utility grid this summer complete anonymity. of Woodrow Wilson Middle School in 1962. A and how those demands will almost certainly Here’s how the loophole worked: You set up year later he became the principal of Clifton strain the system. Mr. Boston makes the point a bank account, collected as many millions as High School. He served that post for 25 years that more is being invested in generation and you could, ran ads under whatever innocuous until his retirement on November 1, 1988. marketing than in transmission, distribution name you chose—Americans for a Decent So- During his tenure at Clifton High School, and reliability, and that until these two different ciety or whatever—and attacked or supported Aaron implemented many educational innova- facets of the business are brought more into any candidate you chose. All you had to do tions including computer technology, student balance, the strains on the system will con- was refrain from using the ‘‘magic words’’ like counseling and placement services. When he tinue. ‘‘vote for,’’ ‘‘vote against,’’ elect,’’ ‘‘defeat,’’ etc. retired in 1988, it was estimated that more All in all, the article will enhance Member’s in reference to a particular candidate. You than 20,000 students had passed through the understanding of the problems we face this could mention the candidates by name. You school in the years that he was in charge. summer and the challenges that are before us could show their unflattering visage against a Aaron received the New Jersey Principals as we confront the complex issue of electric backdrop of belching smokestacks. And then Supervisors Association’s Distinguished Serv- utility restructuring. you could disappear from the face of the ice Award in 1993, and the Clifton Parents earth. [From Forum for Applied Research and Football Boosters named him 1982–83 Man of Public Policy, Summer 2000] That unique combination—unlimited funds the Year. He also had a wing at Clifton High ELECTRICITY: LIFELINE OR BOTTOM LINE? with total anonymity—was the beautiful thing School named after him in 1997. about the 527s, if you were a clever political Principal Halpern was a member of the Ex- (By Terry Boston) fundraiser, or a billionaire with a private agen- ecutive Committee of the New Jersey State On a blistering day last July, two large ca- da. Interscholastic Athletic Association, where he bles at a Chicago substation failed, trig- But that is changing now. The Campaign for was responsible for many athletic rule gering a local blackout that sent hundreds of air-conditioning deprived residents to hos- America, a group of well-respected business changes. He was a life member of the Na- pitals and a few, tragically, to cemeteries. leaders founded by Jerome Kohlberg, recently tional Education Association and the New Jer- At its worst, the blackout left more than stated, ‘‘Tax-exempt status is a subsidy, not sey Congress of Parents and Teachers. 100,000 people without electricity, and thou- an entitlement. Accordingly, organizations ob- An Army Air Corps veteran of World War II, sands remained that way for the better part taining this subsidy have obligations and re- Principal Halpern was a member of the Clifton of three days.

VerDate Aug 04 2004 13:33 Nov 01, 2004 Jkt 039102 PO 00000 Frm 00014 Fmt 0689 Sfmt 0634 E:\BR00\E29JN0.000 E29JN0 June 29, 2000 EXTENSIONS OF REMARKS 13297 This was only one in a string of blackouts generators, wires, switches, breakers, and re- Traditionally, nature has posed the major during the summer of 1999 that afflicted hun- lated equipment that produces and moves threats to a reliable power delivery system. dreds of thousands in New York City, Long electricity to almost every point on the con- Tornadoes and ice destroy transmission Island, New Jersey, the Delmarva Peninsula, tinent—the world’s largest machine. It’s an structures. Lightning knocks out equipment. and four Gulf states. And the problems were apt description. Trees grow and fall into power lines. And not confined to local power companies; sev- Originally, utilities were built to serve spe- while those hazards still exist, competition eral high-voltage transmission systems—de- cific geographic regions and were physically challenges reliability in ways that we are signed to deliver vast amounts of power over isolated from one another. America literally just beginning to recognize and address. great distances in all sorts of weather— had islands of electricity haves and seas of PLANNING IN A VACUUM strained to keep up with demand. Over the electricity have-nots. In fact, where TVA course of five tense weeks, two other black- was created in 1933, only 3 percent of farms Location is always a key consideration in outs hit Chicago while other electric systems in the Tennessee Valley had electricity. As building a new generating plant. Histori- suffered with voltage problems and a few tee- technology improved and power plants in- cally, plants were built where the trans- tered on the brink of collapse. creased in size, these islands grew and began mission system could handle, or could be What’s happening here? Why is the world’s to connect with one another. Many of the made to handle, the added power. In short, strongest, most reliable electric grid scram- connections were established to promote re- planning for new power plants always oc- bling to keep up with hot, but not unprece- liability in the wake of the 1965 New York curred in lockstep with planning for trans- dented, summer weather? And why is it hard blackout, allowing power to be routed in any mission. Plants were built where it made the for some transmission operators to make eye number of ways to circumvent local prob- most electrical sense, often near large con- contact when asked about the prospects for lems. centration of customers to minimize trans- this summer? The reasons are complex, and Today, a single massive, interconnected mission problems. agreement is lacking, but many point to the grid serves the eastern United States and Today, however, power plants are built pressures competition is placing on an indus- eastern Canada, while two other grids serve wherever it makes the most economic sense try still learning how to compete. In short, Texas and the western half of the continent. for the growing number of new players. The the move to restructure the electric utility On that grid, large transmission lines—some most attractive locations seem to be where industry has the industry sprinting toward operating at up to 765 thousand volts—move natural gas pipelines converge with trans- competition before it can walk. As a con- mission interconnections between utilities. sequence, the long-sacred focus on reliability electricity from generators to lower-voltage local distribution systems where smaller The pipelines provide fuel for the plants; the is beginning to blur. Instead of filling its tra- interconnections allow quick access to mar- ditional role as a lifeline, electricity is in lines take it to individual consumers. Transmission is critical because electricity ket. However, the existing transmission fa- danger of becoming just a bottom line. cannot to stored. Natural gas can be kept in cilities may not be adequate or may be used LIGHTS OUT tanks and pork bellies can be stored in freez- up by the introduction of more generators, Blackouts—small or large—are nothing ers, but electricity is consumed the moment exposing everyone who depends on the trans- new; but the reasons for some of last sum- it is produced. The challenge then is to make mission system to greater risk of interrup- mer’s blackouts and near misses are dis- electricity instantly available in the exact tions. turbing. For example, the U.S. Department amounts demanded 24 hours a day, seven day And we are not talking about a handful of of Energy cited Chicago’s Commonwealth a week. If the amount of power delivered new power plants. Gulf States near natural Edison for scrimping on its substation main- equals the amount consumed—every second gas wellheads are seeing hundreds of re- tenance budget—which went from a high of of every day—and if power plants, lines, quests to connect from independent power $47 million in 1991 to just $15 million in switches, breakers, and insulators all do producers with a combined generating capac- 1998—as it shifted money into its nuclear their jobs properly, we have reliability. If ity that the existing grid cannot possibly ac- program and preparations for competition. any part of the machine fails, however, commodate. At the same time, due to envi- Other systems, including TVA’s, were power is interrupted. Interruptions can ronmental and land-use concerns, building threatened when operators were unable to range from a few milliseconds, unnoticed ex- new lines has never been more difficult. predict the massive amounts of power flow- cept by sensitive computer equipment and And while new plant owners must pay for ing across their systems from eager new sell- VCRs, to outages that plunge a single street any transmission upgrades necessary to con- ers on one side to eager new buyers on the or entire regions into darkness. nect to the grid, homeowners question the other. Balance between neighboring power sys- need for improvements and others complain Unless transmission operators understand tems is also critical. If one system under- that utilities may be using the connection exactly where and when power will flow generates—either deliberately to exchange process to restrict access. across their system, lines that are already power, or accidentally because a power plant overboundened by severe weather can fail, OPERATING CONFLICTS shuts down—imbalance results and elec- triggering widespread disruptions. Looking Adopting the mindset of blue-water sail- tricity flows in from other systems like at the blackouts of 1999. DOE concluded that ors—always assume that the boat is trying water through a breached levee. When that ‘‘* * * the necessary operating practices, reg- to sink and do your best to keep it afloat— happens, systems can overload, and because ulatory policies and technologies tools for transmission operators are doing their best they are designed to prevent problems from dealing with the changes [resulting from a to ensure reliability. Doing so is no easy spreading, they automatically shut down. In restructured environment] are not yet in task. Each day on the TVA system alone, place to assure an acceptable level of reli- the most extreme conditions—when weather hundreds of thousands of calculations are ability.’’ forces heavy demand for electricity, and made to determine the demand for power, Energy Secretary Bill Richardson and Fed- equipment over a wide area gets loaded to which plants to run, which to keep on eral Energy Regulatory Commission Chair- the maximum—losing a line many shift the backup, and which to shut down for mainte- man James Hoecker have warned of more burden to other lines, overloading them and nance. Operators also need to know which blackouts this summer, and Richardson causing them to fail. In those cases, power lines, substations, and switching equipment criticized policymakers who ‘‘haven’t kept systems can begin to resemble a row of dom- must be available at any given time, and pace with the rapid changes in the electric inoes, which is what caused the West Coast which they can afford to take out of service utility industry.’’ While many would wel- blackout of 1996. temporarily for maintenance. Finally, they come legislation to ensure reliability, the in- ENTER COMPETITION must know how much power will be flowing dustry desperately needs something more— Changes in national energy policy have en- across their systems from producers on one time. Unless the industry has time to couraged the growth of independent power side to consumers on the other. Without all strengthen the grid, time to understand the producers, electricity marketers, and bro- that detailed information, the transmission new pressures that competitive pricing kers—all of whom differ fundamentally from system is extremely vulnerable, and ensur- brings, and time to develop the complex existing utilities: they don’t own their own ing reliability is simply not possible. And computer modeling and analytical tools lines. Consequently, these new entrants to even with it, better tools are needed to in- needed to safely manage the phenomenal in- the industry must rely on established trans- stantly analyze the data and enable us to crease in electricity transactions, many fear mission owners to provide the critical trade provide relief to the right place at the right the grid may be headed for the most severe routes that move their product to market— time. outages since the New York blackout of 1965. even though at times they compete with Competition means that more and more The Electric Power Research Institute esti- those same transmission owners for capacity power is flowing in more and more directions mates that power failures in the United to serve native load customers. In fact, to on the grid as the number of deals between States cost the economy approximately $50 promote competition, the Energy Policy Act suppliers and customers grows exponen- billion per year. of 1992 required utilities to provide these new tially. While TVA had about 20,000 inter- THE WORLD’S LARGEST MACHINE players with transmission service virtually change transactions with other utilities and Someone once called the North American identical to the service they provide their marketers in 1996, it had nearly 300,000 in electric grid—the massive conglomeration of own generators. 1999. Since electricity follows the path of

VerDate Aug 04 2004 13:33 Nov 01, 2004 Jkt 039102 PO 00000 Frm 00015 Fmt 0689 Sfmt 0634 E:\BR00\E29JN0.000 E29JN0 13298 EXTENSIONS OF REMARKS June 29, 2000 least resistance and respects no political or number of planes that airports could safely players try to outdo each other in search of system boundaries, utilities sometimes find handle, and then level off. That is not what’s short-term profit. Restructuring can help their lines clogged with power that they nei- happening in the electric utility industry. create that balanced field by encouraging ther generated nor planned for. Because of Nationally, electricity sales are growing at a new generators to enter the market and re- the limited ability to predict how power ac- rate of about 2 percent annually, closer to 3 lieve the current shortage of electricity pro- tually will flow from moment to moment, percent in the southeastern region. To meet duction. Without comparable improvements power from most utilities—including TVA— this growth and possibly make large profits in transmission, however, we may be putting sometimes inadvertently flows into or during periods of extreme demand, new gen- out the fire with gasoline. through neighboring systems. erating plants are being built at an unprece- In times of crisis, the added traffic can dented rate. At the same time, investment in f confound the efforts of operators to prevent transmission systems nationally has almost TRIBUTE TO ADAM GRAVES a calamity. On a hot day last August, 10,000 bottomed out. In airline terms, we are build- megawatts—an output equivalent to that of ing planes and sending them from the gate eight large nuclear plants—flowed through with hoards of travelers onboard, even HON. BILL PASCRELL, JR. the TVA system, three-quarters of it un- though we are dangerously short of runways. OF NEW JERSEY planned. The result: TVA—despite all its ef- To make matters worse, those planes take IN THE HOUSE OF REPRESENTATIVES forts—was one thin mishap away from a off and land without talking to the control widespread blackout. In the future, as dozens tower about their flight plan. Wednesday, June 28, 2000 of new plants are added to the grid, these in- Most of the nation’s extra-high-voltage Mr. PASCRELL. Mr. Speaker, I would like to advertent power flows—and the problems transmission lines were built after the infa- call to your attention the exploits of a remark- they cause—will only increase. mous blackouts of the mid-60s. They were in- able athlete and humanitarian, Adam Graves There is also concern about the ways some tended to enable bulk deliveries of power of Tucumseh, Ontario, Canada. On Wednes- new merchant power plants—which are built over long distances in the event of emer- to sell power to a particular buyer, rather gency—thus ensuring reliability. Today, day, June 14, 2000, he was feted at the than to serve a specific area—are being used. however, those lines are largely used for day- Brownstone House in Paterson, NJ, because One marketer that owns merchant plants in to-day commerce. New players in the market of his selfless dedication to the community TVA’s region, aided by a puzzling interpreta- The societal cost of having too much and children by the Boys & Girls Club of Pas- tion of the rules by the National Electric Re- transmission capacity is small compared to saic, NJ, at the Annual Sportsman of the Year liability Council—a utility-sponsored organi- the societal cost of having too little. Yet in- Dinner. It is only fitting that Adam be honored, zation that promotes reliability—determined dustrywide transmission is not being built to for he has a long history of caring, generosity that its power plants can serve as trans- support the new market. In 1990, utilities’ 10- mission control areas and points of delivery year plans called for a total of 13,000 miles of and commitment to others. for power transactions. Normally, a trans- new transmission lines. After passage of the The road to Adam’s professional career took mission control area contains generators and Energy Policy Act in 1992, those plans began him through the minor leagues. He made his consumers of electricity and a control center to nose-dive. By 1999, only 5,600 miles were AHL debut in the 1987 playoffs. In 1989, he responsible for ensuring that both the supply still planned. TVA, I’m pleased to note has helped Adirondack win the Calder Cup and and demand for electricity are kept in bal- not followed this trend. While the miles of notched 11 goals and 7 assists. ance. As a control area, the marketer would panned transmission lines in the United In an All-Star Junior career, Adam totaled have the right to reserve space on TVA’s States have been halved, TVA has doubled 100 goals and 124 assists in two and a half transmission system, ostensibly to have its transmission capital budget. We built seasons with Windsor of the OHL. He led the large quantities of electricity delivered to more than 160 miles of transmission line last its power plants. year and will build a comparable amount team in playoff goals in all three seasons. Since a power plant consumes only minus- this year to enhance reliability within the Adam also captained the Spitfires to the OHL cule amounts of electricity, however, deliv- region. Championship in 1988. In addition, he led the ering large amounts of power to one is phys- THE PUBLIC GOOD OHL in playoff scoring with 32 points. ically impossible; and in fact, this marketer Handled properly, competition can bring Adam Graves also has a stellar international has no intention of receiving electricity at genuine benefits to society. Regions that record. As a member of the Gold Medal-win- its plant. Instead, the arrangement serves have been plagued with high power costs ning Canadian Junior team at the World Junior the marketer by securing a needed path into may one day see lower rates. New partici- TVA’s transmission system. Later, when the Championships in 1988, he notched five pants in the industry may play an important goals. He also served as captain of Team marketer finds a buyer, it can inform TVA— role in bringing about this parity, and they with as little as 20 minutes’ notice—that Canada at the 1993 World Championships in should be encouraged to take part. Obstacles Munich, Germany, tallying six points. Addition- thousands of megawatts will be flowing to a fair, open, and diverse marketplace across the transmission system, ready or should be removed, but carefully and for the ally, he garnered seven points representing not. We consider this a dangerous misuse of right reasons. The public has far too much at Team Canada at the 1999 World Champion- the transmission system and have deter- stake to allow competition to jeopardize re- ships in Norway. mined that we will accommodate the mar- liability. Already, the pendulum has swung Selected by the Detroit Red Wings in the keter’s transmissions only if reliability can so far in the direction of open competition second round, Adam was the 22nd overall be protected. that reliability is being compromised. Established electric utilities don’t always pick of the 1986 NHL Entry Draft. After 3 New participants in the industry tend to years he was traded to the Edmonton Oilers, wear the white hat. Competitive pressures think of electricity as a commodity, to be can bring out rogue behavior in many orga- bought and sold like any other. They are where he helped the team win the Stanley nizations. Last summer, for example, one fond of comparing electricity to natural gas Cup. Adam was signed by the New York midwestern utility had more demand for and seek an industry structure in which they Rangers as a free agent on September 2, electricity than it could supply. Normally in can trade electricity without limits. But as 1991, and clinched his second Stanley Cup in such circumstances, the price of power rises long as electricity is dependent upon instan- 1994. when demand exceeds the supply. If a utility taneous tranmission—until it can be stored cannot meet its contractual requirement, it In total, Adam has appeared in 907 career efficiently for later use—we cannot afford to NHL games, registered 293 goals and 248 as- should interrupt noncritical and keep crit- treat it as a simple commodity. The risk are ical loads, like hospitals, from being at risk. sists for 541 points, along with 61 post-season far too great to permit this mindset to gov- points. He played in his first NHL All-Star Instead of interrupting lucrative sales when ern energy policy. New players, policy- power prices were exorbitantly high, how- makers, and even many established utilities Game on January 22, 1994, at Madison ever, the utility simply allowed its system to must come to realize that electric system re- Square Garden in New York. become a ‘‘black hole’’ on the grid. Because liability doesn’t happen by itself. It takes Born April 12, in Toronto, Ontario, Adam electricity flows to where it is needed, the planning, resources, and time to ensure that Graves wears number nine on the New York utility sucked in power from other utilities the nation’s electric grid will continue to op- Rangers. He plays left wing, is 6 feet tall and without paying the high prices for it and in- erate smoothly. creased the risk of blacking out its neigh- weights 205 pounds. His teammates often call The North American grid can become a him ‘‘Gravy.’’ Interestingly, in 1998, he ap- bors. balanced playing field—accessible to all, sup- BUILD IT AND THEY WILL COME portive of open competition, and robust peared in an episode of ‘‘Spin City’’ starring What would happen if, with air travel enough to withstand the worst that nature Michael J. Fox. Adam also captured the booming, there were suddenly a freeze on and growth can throw at it. Or it can decline ‘‘Good Guy’’ award, presented by the New building new airports or expanding old ones? into a choked and inefficient war zone where York chapter of the Professional Hockey Writ- Air travel would likely peak according to the interruptions are commonplace, as industry ers’ Association, for cooperation with the

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