The Bush Energy Bill is a Trojan Horse

The Public Utilities Holding Company Act (PUHCA) is a cornerstone New Deal financial reform signed into law in 1935. What lays hidden and unmentioned in Bush’s energy bill is the elimination of PUHCA. I don’t know if the elimination of PUHCA is part of Bush’s war on everything from the New Deal or just meant to line the pockets of his buddies – probably both.
PUHCA subjects utility finances and operations to strict regulation by the states and federal government. Most importantly, it restricts ownership of utilities to public or private entities that are in the business of producing power, and keeps speculators out. It was partial PUHCA repeals in 1990 that opened the door to Enron and the energy speculator disaster that ensued.  For 70 years, we have had reliable, cheap electric power that has allowed strong economic growth, and no PUHCA regulated energy company has ever gone bankrupt.  That is why utilities are such good safe investments.

Lynn Hargis of the Federal Energy Regulatory Commission says, “Once PUHCA is gone there will be a white-hot fury of buying and selling utilities and utility assets. This will kill renewables. Not only is it going to be horrible for the whole country, but nobody is even talking about it."
Jack Casazza, a Senior VP for an investor-owned utility says, "I'm a believer in capitalism and I believe in getting a reasonable return on my investment. But the company I came up in believed that you don't hurt the customer. I have grandchildren and I want to see this country run so they benefit, not so Warren Buffett can put money in his pocket."
When the speculators make a killing in the energy markets, where do you think that money comes from – you and me. Once PUHCA is gone, there will be nothing to prevent captive ratepayers from getting fleeced. If Bush has his way, get ready to see your power bill soar way beyond the true cost of energy while sending your payments to his buddies at Halliburton or GE.