A Decade of Utility Blues

This year marks the 10th anniversary of passage of the Energy Policy Act of 1992 in the United States.

Ten years. As has been noted on these pages many times, the changes in this key industry have swept all across the continent, infecting Canada, and having an impact on the jobs and lives of virtually every IBEW member, not just those working in utilities.

I think its fair to ask the questions after a decade of wrestling with deregulation and restructuring: What have we got to show for it?

Weve seen billions of dollars spent in legal and consulting fees, miles of documents filed with government bodies. We watched the chaotic ethos of the commodity markets invade the industry. And we have witnessed some spectacular failures. Weve seen the largest of the United States, California, narrowly avert disaster, watched the model of the new energy company self-destruct, and seen one of the oldest and once highly regarded accounting firms slide toward oblivion.

Weve also seen some positive things. Weve seen companies, workers and consumers pull together to craft intelligent reforms in some states that carefully balanced different interests. Weve seen the spirit of collective bargaining and labor-management cooperation shine through in many places, even as it has deteriorated in others. And we have avoided the widespread dislocation and confusion that accompanied deregulation in other key industries.

The 1992 reform act was intended to be only the first shot in a full-scale drive to reshape the electric utility industry. We are still waiting for part two.

Predicting what Congress will do is an inexact science at best. On the one hand, I would have to say that the chances of a bill that makes major changes in our industry do not appear good right now. On the other hand, this is like a game of pokerTexas Hold Em to be exact. The winner wont be decided until the last card is played, and theres quite a few hands yet to be dealt in the Congress. As always, important developments will be posted on our web site, www.ibew.org.

One would think that the collapse of Enron would make all of the negative consequences of utility deregulation and restructuring as plain as day and help kill negative legislation. It hasnt. There are still powerful economic and political forcesmany with close ties to the White Housethat want national legislation to enable them to continue to game the system for their own profit. Theyve invested heavily, and theyre not about to quitnot because of California, not because of Enron, not for any reason.

Faced with this opposition, we must understand clearly that nobody is going to do our job for us. Protecting our own interests as stakeholders in the utility industry means, first and foremost, living up to our principles as trade union men and women. It is up to us to maintain collective bargaining in the industry. It is up to us to identify and organize workers employed at the many subsidiaries and spin-offs that have been created by restructuring. It is up to us to fight for expanded training and safety measures that are endangered by cost cutting pressures. It is up to us to mobilize and to make our voices heard in the U.S. Congress, the Canadian Parliament, and state and provincial governments across the continent.

We built a great utility industry in North America in the 20th century, the standard for the rest of the world. If we are to see that industry thrive in the 21st century, we need to build on the spirit of trade unionism that sparked the creation of the IBEW 111 years ago. The future is in our hands.

Edwin D. Hill
International President

  Presidents Message
May 2002 IBEW Journal