Judy Martz on Energy & Oil Former Republican MT Governor

Protected transition to competitive energy prices in 2002

In the near-term, the industrial customers and the generators of electricity should enter into contracts for power supply, perhaps with incentives from the State. The price of electricity will increase after July 1, 2002, but it must be reasonable. Suppliers should recover their costs, plus a reasonable profit. The California prices of today are not being set by a competitive marketplace and are unrealistic because they are not a result of long-term supply contracts. Competition will work, but we cannot be halfway in and halfway out.

More energy plants; diversify sources; include renewables

Federal tax incentives for energy, with state decisions.

1. Western Governors find that states must continue to play a pivotal role in electric power decisions. Specifically:
   • The existing authority of states over retail electric power sales and transmissions must be retained.
   • Congress should allow states to create regional mechanisms to decide regional power issues.

1. We need to pursue a national energy policy that will result in a diverse energy portfolio:
   • New energy development: Enable exploration and development of promising domestic oil, gas, coal, geothermal or wind resources.
   • Coal: Implement R&D and tax incentives to promote the development and deployment of new technologies.
   • Renewables: Accelerate the development and deployment of promising renewable energy technologies through the extension and expansion of state and federal production tax credits.
   • Environmental Regulation: Review environmental and natural resource policies to ensure they are as efficient as possible.
   • Permitting Energy Facilities: Streamline state, tribal and federal processes for siting new generation, electric transmission and natural gas pipelines.
   • Energy Infrastructure: Support economic and environmentally sound energy infrastructure investments to transport energy to markets

1. Energy efficiency and conservation: At a minimum:
   • Encourage rate structures that give utilities and customers an incentive to reduce consumption.
   • Encourage long-term stability of government and utility conservation programs.
   • Review and improve the energy efficiency of building codes and appliance efficiency standards that recognize the unique conditions in the West (e.g., dry climates).
   • Support federal, state and tribal tax incentives to accelerate the introduction of new energy efficient technologies.