Grange Fears Electricity Deregulation

The deregulation of the nation’s electric companies could result in higher utility bills for rural Americans, the head of the National Grange warned on Monday.

Speaking to the organization’s national convention in Spokane, Grange Master Kermit Richardson called on the Grange’s 300,000 members to “lead the fight in protecting rural America against any unjust costs” associated with utility deregulation.

“Resist those who would rush to embrace federally mandated electric utility deregulation and mandated retail wheeling,” Richardson told 250 people at Cavanaugh’s Inn at the Park. “This concept may appear attractive at first, but it would be detrimental to rural areas and residential consumers - those of you at the end of the (transmission) line.”

Richardson, a Vermont dairyman in a black bow tie, explained in an interview that he fears that once utilities are deregulated, they will be free to charge higher rates in rural America where there are fewer customers and greater distances over which to carry electric power.

The grange, a service organization that stresses America’s agricultural roots, continues its 130th convention in downtown Spokane through Sunday.

Richardson also outlined the organization’s wish list for the 105th Congress. He said lawmakers should reduce or eliminate capital gains and estate taxes, which penalize farmers trying to pass on their land to their children, and they should renew funding for the National Highway Trust Fund to maintain rural roadways.

Other top priorities for the Grange in 1997 are protecting individual property rights, reforming Medicare and ensuring discounts for rural telecommunication systems.

Richardson said a bipartisan law passed earlier this year will require telecommunication providers to charge lower rates to rural clinics, schools and libraries. Officials have yet to determine the amount of the discount, but Richardson said it could be as much as 20 percent.

, DataTimes