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Utility Conference Meets Amid
Industry Uncertainty

March 24, 2003

Nearly 600 delegates converged on New Orleans March 10-14 to marvel at the state of an industry that today is barely recognizable from the one that existed only a few short years ago.

Electricity deregulation and its fallout continues to be a source of concern and challenge. Enrons demise and the subsequent downward plunge of an industry that used to be among the most stable has repercussions that cloud its future. The high-flying years of mergers, acquisitions and energy trading have led many companies astray from their foundationdelivering reliable power. Add to that post-9-11 security considerations that exact millions in anti-terrorism measures at utilities and what is left is a muddled picture of an electricity delivery system in flux.

"The only point that is clear is that the industry is a pivotal moment in its history," said International President Edwin Hill in his remarks to the conference. "One nudge in any direction could determine whether the industry as a whole or individual companies will fall or rise."

Despite countless unsuccessful attempts among the states and provinces to restructure the utility markets and introduce choice, deregulation is still considered a desirable goal among some academics, politicians and pundits. President Hill said the IBEW continues to help frustrate these powerful proponents of a national deregulation plan at every legislative turn.

International Secretary-Treasurer Jerry OConnor said when it comes to electricity legislation, effective political action is a necessity, proudly telling delegates that the IBEW political action committee is the second largest PAC in the nation.

"We have built that structure and our strength because we have a generation of IBEW leaders who believe fervently that a union that is not active in legislation and politics in the modern world is not living up to its responsibilities to its members," OConnor said. Later, International Representative Liz Shuler, from Legislative and Political Affairs, discussed in detail the numerous anti-worker measures proposed by the White House and Congress.

Both President Hill and Secretary-Treasurer OConnor spoke about the necessity of health care reform and early efforts to establish an IBEW health care plan for members.

Guest speaker Elliot Susseles, of the Segal Company, warned delegates they will be confronted in bargaining with employers hoping to shift the burden of rising health care costs to members. Citing a Bureau of National Affairs Annual Survey of Employer Bargaining Objectives, he said this year companies will be seeking to increase employee premium contributions (47 percent), increase employee deductibles (43 percent) and increase employee co-payments (40 percent). Utility Department International Representative Linda Mathews lead a workshop on the importance of health care and pensions on bargaining.

First District International Representative Peter Routliff introduced a video showing highlights of a press conference in April 2002, only days before the province of Ontario opened its markets to deregulation. The speakers, which included experts from the United States, Canada and Australia, eerily predicted the disaster that would follow.

Power prices skyrocketed: consumer prices rose 40 percent, industrial prices hiked 70 percent. Ontario remains millions of dollars in debt. The short-lived experiment came to a striking halt when under great pressure, the provincial government capped rates until 2006.

Cinergy Chief Executive Officer Jim Rogers also addressed the group about the state of the industry hampered by financial turmoil.

Some of the most important conversations that occurred during the convention were stimulated during the workshops and led by international representatives Mathews, Jim Hunter, Don Hartley and Will Paul. Topics included Public Utility Holding Company Act effect on bargaining, restructuring and organizing.

Utility Department Director Jim Dushaw said increased security following the terrorist attacks of September 11 forces utilities to spend more on government-mandated measures. It also raises concerns about employee civil liberties.

"Everyones concerned about public safety but we need to balance those needs with the reasonable expectations of privacy for employees," Dushaw said. "At the same time, no IBEW worker wants to be threatened inside these facilities because the company failed to screen its employees. We really set forth to protect the interests of workers in a changing society."

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