December 15, 2006   

Quorum Report  
EXECUTIVE SUMMARY: DECEMBER 15, 2006
Press releases, announcements and the like
Texas Manufacturers Association Unveils 2007 Energy Policy Initiatives

The Texas Association of Manufacturers (TAM) today issued a series of energy principles and outlined key policy initiatives that address energy challenges in Texas and will help the state grow jobs and compete in the global marketplace. "Everything is bigger in Texas, including our energy bills," said Tony Bennett, chairman of TAM. "More affordable energy in neighboring states, coupled with the globalization of the marketplace requires us to reduce costs on all fronts - and our energy costs rank among the top three." "TAM has embraced energy principles and policy initiatives that we hope will serve as a guidepost for our elected officials as they work to tackle our state's energy challenges," he said.

December 12, 2006
Contact: Gretchen Fox, 512-694-4326

Association Unveils 2007 Energy Policy Initiatives

Austin, TX -- The Texas Association of Manufacturers (TAM) today issued a series of energy principles and outlined key policy initiatives that address energy challenges in Texas and will help the state grow jobs and compete in the global marketplace.

“Everything is bigger in Texas, including our energy bills,” said Tony Bennett, chairman of TAM. “More affordable energy in neighboring states, coupled with the globalization of the marketplace requires us to reduce costs on all fronts – and our energy costs rank among the top three.”

“TAM has embraced energy principles and policy initiatives that we hope will serve as a guidepost for our elected officials as they work to tackle our state’s energy challenges,” he said. TAM developed its energy principles and policy initiatives after hosting last month’s first-ever Texas Energy Summit where manufacturers, energy experts, government officials, and business leaders came together with dedicated focus to address energy issues facing the state.

Energy issues need attention because high quality manufacturing jobs and economic growth are in jeopardy, according to Bennett. “Manufacturers pay significantly higher electricity bills in Texas than in most other states in the union,” he said. “Mix in low foreign production costs and drastically lower wages in competing countries and Texas suffers a serious competitive disadvantage.”

“To ensure our economic prosperity and to simply remain globally viable, Texas needs sound energy policy to produce more cost-effective, reliable power in the decades to come,” he said.

A sampling of TAM’s initiatives includes a renewed focus on market-based energy sources that are cost-effective, diverse and stable. “If we can diversify our energy sources to include natural gas, renewable energy, liquefied natural gas, coal and nuclear power, Texas will be less vulnerable to fluctuations in the supply or price of any one energy source,” said Bennett.

TAM’s initiatives call for Texas lawmakers to consider ways to make transmission of power more cost-effective by encouraging the development of appropriate transmission lines and by developing a system through which energy consumers and suppliers share the infrastructure costs of these lines. Finally, TAM hopes lawmakers will consider redirecting the resources from the System Benefit Fund back to its original purpose of educating consumers and assisting low income, elderly, and disabled Texans. A full listing of TAM’s legislative initiatives appears below and at www.manufacturetexas.org.

Texas Association of Manufacturers - Energy Principles and 2007 Initiatives

The Texas Association of Manufacturers (TAM) believes that:

• A cost-effective and reliable energy supply is essential to the economic health of Texas.
• Energy reliability and independence must be a priority for the state.
• Transmission policy must support more efficient generation siting and cost-effective generation development.
• Generation developers and owners must meet all applicable environmental standards.
• Regulations should be clearly articulated, consistently applied, and efficiently administered.
• The market should find ways to drive investment in generation to achieve cost-effective generation fuel diversity.

TAM opposes:

• Mandates for any particular type of technology or energy supply.
• Subsidization of any particular generation resource or fuel source.
• Using electric rates as a taxing mechanism.

TAM Supports Policy Initiatives for 2007 that:

• Encourage the development of market-based and cost-effective generation sources that will provide Texas with greater generation fuel diversity, including market-based, cost-effective renewable resources.
• Expand Texas natural gas supplies through exploration and other means (such as liquefied natural gas).
• Require an appropriate sharing of transmission infrastructure costs between producers and consumers of electricity.
• Support the development of transmission infrastructure that will lower manufacturers’ electricity costs and enhance reliability.
• Streamline the generation facility permit processes to encourage more timely expansion of cost-effective energy supplies.
• Remove barriers for and encourage the development of market-based, cost-effective energy efficiency measures for Texas’ manufacturers.
• Remove barriers for and encourage the development of market-based, cost-effective load response programs.
• Rededicate the “system benefit fund” to its statutory purposes.