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Borg: AFTER THREE YEARS ON THE IOWA LEGISLATURE'S AGENDA, UTILITY DEREGULATION CONTINUES AS A POINT OF CONFLICT AT THE IOWA STATEHOUSE. WE'LL DISCUSS THE PROS AND CONS WITH JIM AIPPERSPACH OF THE IOWA ASSOCIATION OF BUSINESS AND INDUSTRY, AND CONSUMER ADVOCATE GARY STEWART OF THE IOWA ATTORNEY GENERAL'S OFFICE, ON THIS EDITION OF IOWA PRESS.

FUNDING FOR IOWA PRESS WAS PROVIDED BY FRIENDS OF IOWA PUBLIC TELEVISION. AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS. AND BY THE ASSOCIATED GENERAL CONTRACTORS OF IOWA, THE PUBLIC'S PARTNER IN BUILDING IOWA'S HIGHWAY, BRIDGE, AND MUNICIPAL UTILITY INFRASTRUCTURE.

THIS IS THE SUNDAY, APRIL 16^th EDITION OF IOWA PRESS. HERE IS DEAN BORG.

Borg: THE BUSINESS OF DEREGULATING UTILITIES, THAT IS, ENABLING COMPETITION AMONG GENERATORS AND DISTRIBUTORS OF ELECTRICITY, IS A TRICKY BUSINESS. THOSE AGAINST THAT NOTION OF ELECTRIC UTILITY DEREGULATION SAY THERE ARE REASONS FOR STATE CONTROL, AND OVERSIGHT IN THE FIRST PLACE, AND THOSE REASONS STILL EXIST. THOSE IN FAVOR OF ELECTRIC DEREGULATION SAY COMPETITION WILL LOWER PRICES. IN FACT, SOME 25 STATES HAVE ALREADY RESTRUCTURED THEIR UTILITY MONOPOLIES, WITH VARYING DEGREES OF SUCCESS. IT SEEMS TO BOIL DOWN TO TWO BASIC QUESTIONS: HOW MUCH DEREGULATION OF UTILITIES IS BENEFICIAL FOR CONSUMERS AND THE ENVIRONMENT; AND HOW MUCH UTILITY REGULATION SHOULD THE STATE RETAIN TO PROTECT CONSUMERS AND THE ENVIRONMENT? WELL, HERE TO HELP US BETTER UNDERSTAND THOSE COMPLEXITIES ARE JIM AIPPERSPACH OF THE IOWA ASSOCIATION OF BUSINESS AND INDUSTRY AND GARY STEWART, WHO IS THE CONSUMER ADVOCATE IN THE OFFICE OF THE ATTORNEY GENERAL OF IOWA. GENTLEMEN, WELCOME TO IOWA PRESS.

Both: THANK YOU.

Borg: ALSO WITH US HERE AT THE TABLE, STATEHOUSE REPORTERS DAVID YEPSEN OF THE DES MOINES REGISTER AND MIKE GLOVER OF THE ASSOCIATED PRESS.

Glover: MR. AIPPERSPACH, AS DEAN MENTIONED, ELECTRIC DEREGULATION HAS BEEN AN ISSUE FOR QUITE A WHILE. WHY DOES THE STATE NEED TO GIVE UP ITS REGULATION OF THE ELECTRIC INDUSTRY?

Aipperspach: ACTUALLY, THE STATE WON'T BE GIVING UP ITS REGULATION OF THE INDUSTRY. IT WILL PROVIDE CHOICE FOR THOSE PARTS OF THE ELECTRIC INDUSTRY THAT HAVE BECOME COMPETITIVE WHILE PROVIDING REGULATION OF THE SAFE, DEPENDABLE ELECTRIC SYSTEM THAT WE'VE KNOWN FOR SOME 75 YEARS IN IOWA.

Glover: WHY DOES THE STATE NEED THIS BILL?

Aipperspach: IT NEEDS THIS BILL BECAUSE ELECTRIC CHOICE IS EXPANDING AROUND THE COUNTRY. SOME TWO-THIRDS OF THE U.S. CITIZENS NOW ARE ABLE TO EXERCISE CHOICE. THIS PROVIDES AN OPPORTUNITY FOR AN IOWA SOLUTION TO RESTRUCTURING THIS INDUSTRY. IT PROVIDES FOR POTENTIAL GROWTH OF NEW JOBS IN INDUSTRY. IT PROTECTS THE ENVIRONMENT. IT PROVIDES PROTECTION FOR CONSUMERS, AND IT PROVIDES GOOD PROTECTION FOR LABORERS AS WELL.

Yepsen: MR. STEWART, WHAT'S WRONG WITH THAT?

Stewart: THERE'S A FAIRLY LARGE DISPARITY IN PRICES AND COSTS ACROSS THE UNITED STATES. WITH DEREGULATION THROUGHOUT THE UNITED STATES, THERE ARE BOUND TO BE WINNERS AND LOSERS. IOWA IS A LOW-COST, LOW-PRICE STATE RELATIVE TO THOSE WHICH HAVE ALREADY DEREGULATED ELECTRICITY. AND IOWA STANDS TO BE A NET LOSER, RATHER THAN A NET WINNER, UPON DEREGULATION.

Yepsen: HOW DO YOU RESPOND TO THAT, MR. AIPPERSPACH?

Aipperspach: THE CONSUMER ADVOCATE'S OWN STUDY IN 1998 ACKNOWLEDGES THAT IOWA HAS THE HIGHEST RESIDENTIAL AND CONSUMER ELECTRIC RATES OF ANY STATE THAT HASN'T RESTRUCTURED IN THIS REGION. ILLINOIS HAS RESTRUCTURED. WE HAVE THE NEXT HIGHEST RATE. SO AMONGST THE STATES ACROSS THE COUNTRY, OF THE 25 STATES THAT HAVE NOT RESTRUCTURED THEIR ELECTRIC RATES, IOWA ALSO HAS THE HIGHEST RESIDENTIAL AND COMMERCIAL RATES, ACCORDING TO THE CONSUMER ADVOCATE'S OWN STUDY.

Glover: MR. STEWART?

Stewart: THAT IS CORRECT. IOWA'S RESIDENTIAL RATES ARE EXCESSIVE RELATIVE TO THE COST OF PROVIDING THE SERVICE. HOWEVER, IN THE STATES WHICH HAVE DEREGULATED ELECTRICITY, THE RESIDENTIAL CUSTOMERS ARE NOT YET BENEFITTING.

Yepsen: LET'S GO RIGHT TO THE CHASE HERE. THIS IS AN AWFULLY ARCANE AND BORING SUBJECT THAT'S DIFFICULT FOR MANY PEOPLE TO UNDERSTAND. MR. AIPPERSPACH, IF WE PASS DEREGULATION IN IOWA, IS MY LIGHT BILL GOING TO GO UP OR DOWN?

Aipperspach: I BELIEVE YOUR LIGHT BILL WILL NOT GO UP. IN FACT, MY SENSE IS THAT THE COMPETITIVE MARKET WILL CREATE FORCES THAT PUT DOWNWARD PRESSURE ON RATES. AND ESPECIALLY OVER TIME, YOUR RATES WILL GO DOWN.

Borg: HOW WILL IT WORK? HOW IS THAT GOING TO HAPPEN? WHAT IS ELECTRIC DEREGULATION? IT SOUNDS GOOD. WE'VE HEARD IT IN THE AIRLINES. WE'VE HEARD IT IN THE TELEPHONE COMPANIES AND SO ON. HOW IS IT GOING TO WORK WITH ELECTRICITY?

Aipperspach: IT PROVIDES FOR CHOICE WITH THE SELECTION OF WHO ACTUALLY GENERATES YOUR ELECTRICITY. SO YOU'RE ABLE TO PURCHASE ELECTRICITY AMONGST THE HOST OF PROVIDERS WHO GENERATE IT COMPETITIVELY. ALL OF THE POLES AND WIRES AND THE INFRASTRUCTURE THAT THE RURAL ELECTRIC COOPERATIVES, POWER COMPANIES, AND INVESTOR-OWNED UTILITIES HAVE STRUCTURED OVER THESE MANY YEARS STAYS IN PLACE AND IT CONTINUES TO BE OPERATED THE WAY IT HAS BEEN IN THE PAST. SO IT PROVIDES CHOICE AMONG COMPETITORS.

Yepsen: MR. STEWART?

Stewart: THE DIFFICULTY WITH THAT IS THAT COMPETITION -- ECONOMIC THEORY DOES NOT HOLD THAT COMPETITION REDUCES PRICES. IN FACT, ECONOMIC THEORY HOLDS THAT COMPETITION WILL REDUCE PRICES IF THE COMPETITIVE COSTS OF PRODUCTION IS LOWER THAN THE MONOPOLY COST OF PRODUCTION. AND ALL OF THE EVIDENCE SAYS THAT IS NOT TRUE WITH RESPECT TO IOWA AND OTHER LOW-COST STATES.

Yepsen: WHAT'S IT GOING TO MEAN TO MY LIGHT BILL? IF THIS BILL PASSES, IS MY LIGHT BILL GOING TO GO UP OR DOWN?

Stewart: WE BELIEVE RESIDENTIAL AND SMALL-BUSINESS CONSUMER RATES WOULD GO UP.

Glover: MR. AIPPERSPACH, WE'RE IN THE FINAL HOWEVER MANY DAYS OF THIS LEGISLATIVE SESSION. THIS BILL FACES A TOUGH FUTURE. WHAT ARE THE PROSPECTS? IS THIS GOING TO PASS THIS YEAR?

Aipperspach: WE BELIEVE IT'S GOING TO PASS. I THINK LEGISLATORS ARE CONTINUING TO TRY TO UNDERSTAND THE LEGISLATION MORE FULLY. THEY'VE SURELY HAD MANY OPPORTUNITIES TO DO SO, AND MANY OF THEM ARE TAKING ADVANTAGE OF IT. GOVERNOR VILSACK IS AN ADVOCATE OF THE LEGISLATION. IN FACT, THE LAST SEVERAL MONTHS, HIS CHIEF OF STAFF, JOHN NORRIS, HAS HELPED US FACILITATE DISCUSSIONS TO FIND THE AREAS OF AGREEMENT THAT STILL REMAIN. A WIDE GROUP OF IOWANS HAVE SPENT A COUPLE YEARS WORKING TO DEVELOP THIS LEGISLATION. SO, WE'RE HOPEFUL THAT THE LEGISLATURE WILL PASS THIS LEGISLATION SO WE CAN BEGIN THIS ORDERLY TRANSITION. IT WILL TAKE US ALMOST A DECADE, AND THERE ARE CHECKS AND BALANCES THAT WE CAN MOVE FORWARD, WE CAN MONITOR HOW WE'RE DOING, THE LEGISLATURE CAN MAKE CHANGES, THE REGULATORS WILL HAVE SIGNIFICANT RESPONSIBILITY. SO I THINK IT'S TIME TO BEGIN THIS ORDERLY PROCESS OF RESTRUCTURING.

Glover: MR. STEWART, YOU'RE OVER THERE AN AWFUL LOT. WHAT DO YOU THINK THE PROSPECTS ARE?

Stewart: I THINK THE PROSPECTS ARE TOO DIFFICULT TO CALL RIGHT NOW. I THINK IT'S MUCH TOO CLOSE TO PREDICT WHETHER OR NOT THE LEGISLATION WOULD PASS OR NOT. I DO BELIEVE THAT IT IS -- VERY SUBSTANTIAL CHANGES NEED TO BE MADE IN ORDER TO PROTECT IOWANS IF THIS BILL IS PASSED.

Yepsen: WHAT CHANGES WOULD YOU LIKE TO SEE, MR. STEWART? WHAT CHANGES WOULD YOU LIKE TO SEE PUT INTO THIS BILL TO MAKE IT BETTER FOR CONSUMERS?

Stewart: ELECTRIC DEREGULATION IS AN EXPERIMENT. NO ONE KNOWS IF IT'S GOING TO WORK. THE ONLY WAY TO DETERMINE IF IT IS A SUCCESS IS TO COMPARE THE RESULTS WITH WHAT WE HAVE TODAY; THAT IS, COST-BASED PRICE REGULATION. WE NEED A RATE CASE TO SET THE INITIAL PRICE FOR RESIDENTIAL AND SMALL-BUSINESS CONSUMERS.

Yepsen: SO IN OTHER WORDS, BEFORE THIS GOES INTO EFFECT, EVERY UTILITY IN THE STATE OUGHT TO GO BEFORE THE UTILITIES BOARD AGAIN, JUST ONE LAST TIME, SO TO SPEAK, TO MAKE SURE THEY'RE NOT OVERCHARGING?

Stewart: YES. MID AMERICA AND ALLIANT ARE THE ONLY REGULATED ELECTRIC UTILITIES IN THE STATE. AND WE BELIEVE WE NEED A RATE CASE FOR EACH OF THOSE COMPANIES TO SET THE INITIAL PRICES.

Yepsen: MR. AIPPERSPACH, SPEAK TO THE OPPONENTS OF THIS RIGHT NOW FOR ME. GIVE ME YOUR BEST ARGUMENT FOR THIS. THIS IS A TOUGH ISSUE. I'VE NEVER SEEN AN ISSUE LIKE THIS. YOU'VE GOT A PROGRESSIVE GOVERNOR IN VILSACK FOR IT. YOU'VE GOT DEMOCRATIC LEGISLATORS AGAINST IT. YOU'VE GOT SOME MEMBERS OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS FOR IT AND OTHER IBEW MEMBERS AGAINST IT. THE LEAGUE OF CITIES IS FOR IT -- OR AGAINST IT. THE MUNICIPAL UTILITIES ARE FOR IT. IT'S TOUGH TO SORT OUT. NOBODY'S WEARING WHITE HATS AND BLACK HATS. GIVE ME YOUR BEST ARGUMENT FOR THIS BILL.

Aipperspach: I THINK THE BEST ARGUMENT IS THAT THOUGHTFUL IOWANS, THE GROUPS THAT YOU WERE JUST BEGINNING TO DESCRIBE WHO ARE NOT SUPPORTING THE BILL, ALONG WITH THOSE OF US WHO SUPPORT THE BILL, HAVE SPENT THE LAST TWO YEARS WORKING TOGETHER TO TRY TO FIND ALL THE COMMON INTERESTS, ALL THE MIDDLE GROUND. THIS LEGISLATION HAS THE BEST CONSUMER PROTECTIONS OF ANY LEGISLATION LIKE IT PASSED IN THE COUNTRY. IT HAS THE BEST LABOR PROVISIONS OF ANY LEGISLATION PASSED IN THE COUNTRY. IT WILL MAKE IOWA AN ENVIRONMENTAL LEADER IN BOTH ENERGY EFFICIENCY AND RENEWABLE ENERGY. THE GOVERNOR, IN THE AMENDMENT THAT HE HAS ACKNOWLEDGED ON THIS PROGRAM AND ELSEWHERE HAS BECOME THE "VILSACK AMENDMENT," DOES THAT. THAT'S WHY THIS LEGISLATION OUGHT TO PASS, AND THAT'S WHY PEOPLE HAVE WORKED SO HARD TO GET TO THIS POINT.

Yepsen: AND MR. STEWART, GIVE ME YOUR BEST ARGUMENT AGAINST THIS BILL.

Stewart: THE BILL DEREGULATES THE ELECTRIC GENERATION SERVICE PRICE FOR RESIDENTIAL AND SMALL-BUSINESS CONSUMERS ON OCTOBER 1, 2006, REGARDLESS OF WHETHER OR NOT THERE IS ANY COMPETITION IN IOWA.

Glover: MR. AIPPERSPACH, AS YOU HAVE MENTIONED, THE GOVERNOR IS SUPPORTIVE OF THIS BILL. SHOULD THIS BILL NOT PASS, DO YOU THINK HE'LL BE SUPPORTIVE NEXT YEAR?

Aipperspach: DO I THINK THE GOVERNOR WILL BE SUPPORTIVE?

Glover: THERE HAVE BEEN SOME SUGGESTIONS THAT AS HE CLOSES ON AN ELECTION, HE'S NOT GOING TO WANT TO IRRITATE A KEY DEMOCRATIC CONSTITUENCY LATER.

Aipperspach: I SURELY CAN'T SPEAK FOR THE GOVERNOR, BUT I THINK THE GOVERNOR BELIEVES THIS IS THE RIGHT ELECTRIC ENERGY POLICY FOR THE STATE. IT'S TIME TO MOVE FORWARD SO THAT WE CAN TAKE ADVANTAGE OF THE ECONOMIC GROWTH THAT COMES WITH IT. WITH REGARD TO CONSUMER PRICES, WE'RE CONFIDENT PRICES ARE NOT GOING TO GO UP, THEY'RE GOING TO GO DOWN. WHERE COMPETITION DOESN'T DEVELOP, THE CONSUMERS WILL CONTINUE TO HAVE THE OVERSIGHT OF THE IOWA UTILITIES BOARD SO THEY CAN TAKE ADVANTAGE OF COMPETITIVE PRICING WITHOUT ACTUALLY EXPERIENCING COMPETITION IF IT DOESN'T DEVELOP. SO THERE ARE MORE PROVISIONS IN HERE TO TRY TO BALANCE THE NEEDS OF EVERYONE. I WOULD THINK THE GOVERNOR WILL CONTINUE TO BE VERY SUPPORTIVE.

Glover: CAN YOU EXCUSE CONSUMERS FOR BEING JUST A LITTLE SKEPTICAL? FOR INSTANCE, WE TALKED ABOUT OTHER INDUSTRIES HAVE BEEN DEREGULATED. THEY DEREGULATED THE AIRLINE INDUSTRY, AND IOWA HAS SOME OF THE MOST HORRIFIC AIR FARES IN THE COUNTRY. WHY SHOULDN'T CONSUMERS BE SKEPTICAL?

Aipperspach: I WOULDN'T COMPARE THIS TO THE DEREGULATION OF THE AIRLINES. THE DEREGULATION OF THE AIRLINES IS DIFFERENT. THE PROBLEM WITH THE AIRLINES IS THERE'S A DIFFICULTY IN GETTING ACCESS. YOU CAN'T GET GATE SPACE, YOU CAN'T FLY INTO CHICAGO, FOR EXAMPLE. THIS PROVIDES FOR OPEN ACCESS, FOR OPEN COMPETITION, REGULATORY CONTROL OF THE PART OF THE BUSINESS THAT WON'T BE RESTRUCTURED.

Borg: MR. STEWART, BUILDING ON THAT, HELP ME UNDERSTAND. AM I, IF THIS PASSES, GOING TO BE ABLE TO WRITE A CHECK AND BUY MY POWER FROM FLORIDA POWER AND LIGHT, OR WILL I CONTINUE TO DEAL WITH THE TWO THAT YOU MENTIONED EARLIER HERE IN IOWA?

Stewart: YOUR DELIVERY SERVICE PROVIDER WILL BE THE SAME COMPANY THAT CURRENTLY OWNS THE WIRES THAT SERVE YOUR HOME. YOUR GENERATION PROVIDER COULD BE ANYONE WHO IS LICENSED AND AUTHORIZED TO SELL ELECTRICITY IN THE STATE OF IOWA.

Yepsen: MR. STEWART, WHAT'S WRONG WITH DEREGULATION? WE DEREGULATED THE TELEPHONE INDUSTRY. YOU HAVE COMPETITION THERE. LONG-DISTANCE PHONE CALLS ARE CHEAPER THAN EVER AND GETTING CHEAPER ALL THE TIME. THE SAME IS TRUE FOR AIRLINES. MIKE MENTIONED THE DIFFICULTY OF GETTING A FLIGHT, BUT PRICES ADJUSTED FOR INFLATION ARE LOW. SO WHAT'S WRONG WITH A LITTLE COMPETITION?

Stewart: THERE'S NOTHING WRONG WITH COMPETITION IF IT ACTUALLY REDUCES THE COST OF PROVIDING THE SERVICE, AND THEREFORE, THE PRICE OF PROVIDING THE SERVICE. WE BELIEVE THERE'S NO EVIDENCE THE COST OF PROVIDING ELECTRIC GENERATION SERVICE IN IOWA WOULD GO DOWN; AND, THEREFORE, THE PRICE WOULD NOT GO DOWN. OUR GENERATION COSTS ARE SIMPLY TOO LOW.

Yepsen: MR. AIPPERSPACH, WHAT HAPPENS IF THIS DOESN'T PASS?

Aipperspach: I THINK IF IT DOESN'T PASS, IT WILL BE DIFFICULT TO KEEP THIS GROUP OF PEOPLE TOGETHER WHO HAVE WORKED SO HARD TO DEVELOP THIS LEGISLATION. THEY'VE GOT OTHER THINGS THEY NEED TO PAY ATTENTION TO. ELECTRIC COMPANIES NEED TO PLAN THEIR FUTURE. IF THE STATE DECIDES IT'S NOT GOING TO CHANGE ITS ELECTRIC ENERGY POLICY, THEN THEY'RE GOING TO NEED TO TRY TO OPERATE IN A REGULATED ENVIRONMENT, AND THEY'RE GOING TO MAKE INVESTMENT DECISIONS THAT LAST UP TO 30 OR 40 YEARS. SO I THINK IT WILL BE DIFFICULT. I THINK OUR ORGANIZATION, MADE UP OF NEARLY 1,700 BUSINESSES ACROSS THE STATE, ARE GOING TO MAKE DECISIONS ABOUT WHERE THEY BUILD THEIR ADDITIONAL FACILITIES BASED ON WHERE THEY CAN BUY ENERGY MOST COMPETITIVELY. SO I THINK A LOT OF THOUGHTFUL PEOPLE, FRANKLY, JUST DON'T AGREE WITH THE OFFICE OF CONSUMER ADVOCATE ABOUT FUTURE PRICES OF ELECTRICITY. WE BELIEVE STRONGLY THAT THE COMPETITIVE MARKETPLACE TENDS TO REDUCE PRICE BECAUSE OF COMPETITION RATHER THAN HAVE A COST-PLUS PRICING SYSTEM.

Yepsen: AND MR. STEWART, SAME QUESTION TO YOU. WHAT HAPPENS IF THIS DOES NOT PASS?

Stewart: I THINK THAT'S TOO DIFFICULT TO PREDICT WHAT WOULD HAPPEN. I WOULD NOTE THAT IOWA CURRENTLY HAS AMONG THE LOWEST INDUSTRIAL PRICES IN THE ENTIRE UNITED STATES. OUR PRICES ARE ONLY ONE PENNY PER KILOWATT HOUR ABOVE THE LOWEST IN THE UNITED STATES. IF LOW ELECTRIC PRICES FOR INDUSTRIAL CUSTOMERS WAS A STIMULUS TO ECONOMIC DEVELOPMENT, WE WOULD HAVE MUCH GREATER ECONOMIC DEVELOPMENT IN IOWA.

Glover: MR. AIPPERSPACH, SOMETIMES IN A LEGISLATIVE SESSION, THERE ARE ISSUES THAT POP UP, COME TO PEOPLE'S ATTENTION, LATE IN THE SESSION. A LOT OF SCARE TACTICS WERE RUNNING AROUND A COUPLE OF YEARS AGO WITH THE BEEF PLANT. IF DON'T BUILD THIS BEEF PLANT, EVERY FARMER IN IOWA IS GOING TO PACK UP HIS FARM AND LEAVE. IS THIS ONE OF THOSE? ARE YOU TRYING TO SCARE PEOPLE INTO PASSING THIS?

Aipperspach: I DON'T BELIEVE SO. I THINK THE ANNOUNCEMENT RECENTLY MADE BY MID AMERICAN ENERGY COMPANY WITH REGARD TO DEVELOPING GENERATION PLANTS IN THE STATE OF IOWA IS JUST AN ACKNOWLEDGMENT OF A BUSINESS DECISION THEY WILL NEED TO MAKE BASED ON THE BUSINESS CLIMATE IN THIS STATE. AND IF THEY FEEL THAT IT'S IN THEIR BEST INTEREST TO DEVELOP THESE FACILITIES OUTSIDE OF IOWA, THAT'S A BUSINESS DECISION THAT THEY WILL MAKE. SO IT'S NOT, I DON'T BELIEVE, A THREAT. IT'S JUST A REALITY OF THE MARKET AND WHAT'S HAPPENING.

Glover: MR. STEWART, WE HAVE AN ISSUE THAT HAS ALMOST ALL OF THE MONEY IN THE LOBBY IN ITS CORNER. YOU'VE GOT A MAJORITY IN BOTH CHAMBERS OF THE LEGISLATURE PHILOSOPHICALLY INCLINED TO DO THIS. YOU HAVE A GOVERNOR WHO'S WILLING TO SIGN IT. HOW DO YOU STAND IN THE WAY OF THAT?

Stewart: WE HAVE TO STAND IN THE WAY OF IT ON THE BASIS OF THE FACTUAL EVIDENCE. THERE IS NO EVIDENCE THAT THE COST OF ELECTRICITY OR THE PRICE OF ELECTRICITY WOULD GO DOWN IN IOWA. ALL OF THE EVIDENCE POINTS THE OPPOSITE DIRECTION.

Yepsen: WHAT ABOUT THAT, MR. AIPPERSPACH?

Aipperspach: I THINK THIS LEGISLATION IS PUT TOGETHER IN A WAY THAT CONSUMERS ARE PROTECTED. "IF" YOU AGREE WITH MR. STEWART ABOUT THE PRICE OF ELECTRICITY, YOUR RATES AREN'T GOING TO GO UP BECAUSE THIS INDUSTRY IS RESTRUCTURED, BECAUSE THERE ARE PROVISIONS IN THERE THAT WILL CONTINUE REGULATION, CONTINUE TO ASSURE FOLKS THAT THEY'RE NOT GOING TO BE TAKEN ADVANTAGE OF IN A COMPETITIVE MARKET. THIS NINE-YEAR TRANSITION PERIOD IS GOING TO GIVE US AN OPPORTUNITY TO REALLY SEE IF THIS CAN WORK. "THE DES MOINES REGISTER" SAID WE OUGHT TO GIVE THIS LEGISLATION A CHANCE. IT'S AN IMPORTANT TIME FOR THIS STATE TO MOVE FORWARD, BE PROGRESSIVE IN ITS POLICY, AND CREATE AN OPPORTUNITY FOR THIS INDUSTRY TO BE BRINGING BENEFITS TO IOWANS.

Yepsen: MR. STEWART, I WANT TO GO BACK TO A POINT MIKE RAISED EARLIER... THE POWER PLANTS. MID-AMERICAN HAS SAID IT WILL BUILD TWO NEW POWER PLANTS, PROBABLY SOMEWHERE IN CENTRAL IOWA, IF THIS BILL IS APPROVED. WHAT'S WRONG WITH THAT? AREN'T THOSE JOBS? WHY WOULDN'T YOU BE SUPPORTIVE OF THAT?

Stewart: THERE'S NOTHING WRONG WITH THAT. AND, IN FACT, CURRENT LAW REQUIRES MID-AMERICAN TO EITHER BUILD THE POWER PLANTS OR BUY ELECTRICITY FROM SOME SOURCE IN ORDER TO PROVIDE REASONABLY ADEQUATE SERVICE TO ALL OF THEIR IOWA CUSTOMERS. CURRENT LAW REQUIRES THAT. WITH CONTINUED REGULATION, THEY WOULD BE ASSURED AN OPPORTUNITY TO RECOVER THE COST OF THOSE PLANTS. THEY WOULD ALSO RECOVER THE COST OF THOSE PLANTS IF THEIR GENERATION PRICES ARE DEREGULATED. IN FACT, THOSE PLANTS WILL BE LOWER-COST THAN THE COOPER NUCLEAR STATION COSTS THEY INCUR TODAY FOR NUCLEAR POWER FROM NEBRASKA.

Glover: MR. AIPPERSPACH, LET'S LOOK AT SOME OF THE GROUPS OF PEOPLE WHO WOULD BE AFFECTED BY THIS AND SEE WHAT THEY WOULD GAIN FROM THAT. BUSINESS CUSTOMERS.... WHAT'S IN IT FOR THEM IF THIS LEGISLATION PASSES?

Aipperspach: BUSINESS CUSTOMERS KNOW HOW THE COMPETITIVE MARKETPLACE WORKS, AND THEY LIKE TO PURCHASE IN THE COMPETITIVE MARKET AND KNOW HOW TO ECONOMIZE ON THEIR PRICES BY USING COMPETITION TO LOWER PRICE.

Glover: MR. STEWART, WHAT'S IN IT FOR BUSINESS IN YOUR VIEW?

Stewart: FOR LARGE INDUSTRIAL CUSTOMERS, THEY APPARENTLY BELIEVE THAT THEY CAN EITHER GET LOWER PRICES OR AVOID HIGHER PRICES. FOR SMALL-BUSINESS CUSTOMERS, I DON'T BELIEVE THEY REALLY THINK THEY'RE GOING TO SUCCEED. I DON'T THINK THEY BELIEVE THEY'RE GOING TO GET LOWER PRICES.

Yepsen: WHAT'S WRONG WITH BUSINESS GETTING TOGETHER AND BUYING POWER IN BULK, JUST LIKE THEY BUY ANY OTHER COMMODITY?

Stewart: IF SMALL BUSINESSES AGGREGATED UNDER THIS LEGISLATION IN AN ATTEMPT TO GET LOWER PRICES, IF THEY GOT LOWER PRICES AND INDUSTRIAL CUSTOMERS GOT LOWER PRICES, SOMEBODY'S GOING TO HAVE TO PAY THE HIGHER PRICES, BECAUSE IT'S MATHEMATICALLY IMPOSSIBLE FOR EVERYONE TO PAY BELOW-AVERAGE PRICES.

Yepsen: WHAT ABOUT THAT?

Aipperspach: I DON'T AGREE WITH THAT. I THINK THE COMPETITIVE MARKET TENDS TO FORCE THE PROVIDERS TO MATCH THE PRICE OF THE LOWEST BIDDER IN THE MARKETPLACE, AND THAT WILL BRING DOWN THE PRICES FOR EVERYONE. AND IF YOU WANT TO BE IN THE BUSINESS, YOU'VE GOT TO DRIVE YOUR COSTS OUT OF THE BUSINESS SO YOU CAN MEET THAT LOWER THRESHOLD OF PRICE.

Yepsen: MIKE ASKED WHAT WAS IN IT FOR BUSINESS. WHAT'S IN IT FOR THE CONSUMER, MR. AIPPERSPACH? WHAT'S IN IT FOR GRANDMA?

Aipperspach: I THINK WHAT'S IN IT FOR GRANDMA ARE SEVERAL THINGS. I THINK GRANDMA CAN BE ASSURED THAT SHE'LL CONTINUE TO RECEIVE SAFE AND DEPENDABLE ELECTRIC SERVICE, BECAUSE THE REGULATORS WILL CONTINUE TO REGULATE THE SYSTEM ITSELF. I THINK GRANDMA IS GOING TO BE ABLE TO TAKE ADVANTAGE OF THE COMPETITIVE PRICES THAT OTHERS ARE GETTING FOR ELECTRICITY, AND GRANDMA IS GOING TO HAVE AN OPPORTUNITY TO BE A BENEFICIARY OF THAT OVERALL REDUCTION OF PRICES. THERE'S A $23.5-MILLION FUND IN HERE TO PROTECT LOW-INCOME IOWANS WHO HAVE DIFFICULTY PAYING THEIR ELECTRIC BILLS. THERE'S ASSURANCE OF ADDITIONAL JOBS. THAT CREATES ECONOMIC VITALITY IN THIS STATE. THERE'S AN OPPORTUNITY TO TAKE CARE OF THE ENVIRONMENT BY HAVING THE BEST ENVIRONMENTAL PROVISIONS OF ANY LEGISLATION ACROSS THE COUNTRY. SO WE CAN BE A LEADER IN ENERGY EFFICIENCY, RENEWABLE ENERGY RESOURCES.

Yepsen: MR. STEWART, WHY IS THIS A BAD DEAL FOR GRANDMA?

Stewart: I BELIEVE IT'S GOING TO CAUSE HER ELECTRIC PRICES TO GO UP. I THINK IT'S GOING TO CHALLENGE THE RELIABILITY OF THE ELECTRIC SYSTEM. THE UNITED STATES DEPARTMENT OF ENERGY IS VERY CONCERNED WITH THE RELIABILITY OF THE TRANSMISSION SYSTEM IN THE UNITED STATES AND WITH THE ABUSE OF MARKET POWER IN STATES WHERE DEREGULATION HAS ALREADY OCCURRED. THEY RECENTLY RELEASED A STUDY SAYING CALIFORNIA UTILITIES OVERCHARGED CUSTOMERS $800 MILLION OVER ABOUT A 17-MONTH PERIOD.

Glover: MR. AIPPERSPACH, WHAT'S IN IT FOR UTILITIES IF THIS BILL IS DEREGULATED? UTILITIES RIGHT NOW OPERATE IN A RATE-REGULATED ENVIRONMENT WITH A GUARANTEED RATE OF RETURN AND GUARANTEED PRICES. WHY SHOULD THEY GIVE THAT UP?

Aipperspach: WHAT THE INVESTOR-OWNED UTILITIES, I BELIEVE, NEED TO KNOW IS WHAT IOWA'S POLICY IS GOING TO BE FOR THE FUTURE. AND THEY WANT TO KNOW IF THEY'RE GOING TO BE OPERATING FOR THE NEXT 30 OR 40 YEARS IN A REGULATED ENVIRONMENT SO THAT THEY CAN PLAN THEIR BUSINESSES AROUND THAT AND CONTINUE TO OPERATE A COST-PLUS BUSINESS; OR IF THERE'S GOING TO BE ACKNOWLEDGEMENT THAT THE INDUSTRY HAS CHANGED, THERE ARE COMPETITIVE FORCES, AND ULTIMATELY WE NEED TO CHANGE HOW THE POLICY IS IN THIS INDUSTRY AND CREATE COMPETITIVE CHOICES. THEY NEED TO KNOW WHAT THE POLICY IS GOING TO BE FOR THE LONG TERM SO THAT THEY CAN MAKE BUSINESS DECISIONS. THEY BELIEVE THAT THEY CAN BETTER SERVE THEIR CUSTOMERS AT LOWER PRICES MORE RELIABLY IF THEY HAVE THE OPPORTUNITY TO PROVIDE THESE SERVICES COMPETITIVELY WHERE COMPETITION CAN WORK.

Glover: MR. STEWART, UTILITIES RIGHT NOW ARE GUARANTEED A RATE OF RETURN, GUARANTEED A PROFIT. WHY SHOULD THEY GIVE THAT UP?

Stewart: TECHNICALLY, THEY ARE NOT GUARANTEED A PROFIT. THEY ARE GUARANTEED AN OPPORTUNITY TO CHARGE PRICES THAT WOULD ALLOW THEM TO EARN A PROFIT IF THEY CONTINUE TO INCUR REASONABLE COSTS. I BELIEVE THEY WANT TO GIVE THAT UP, AS YOU SAY, IN ORDER TO GET HIGHER PRICES THAN CURRENT LAW WOULD ALLOW. THEY ARE ASKING THE IOWA LEGISLATURE TO PREVENT THE STATE GOVERNMENT FROM REDUCING ELECTRIC PRICES SO THAT THEY MAY VOLUNTARILY REDUCE ELECTRIC PRICES IN THE FUTURE.

Yepsen: MR. AIPPERSPACH, ANOTHER CONCERN YOU HEAR VOICED UP THERE IS THE CONCERN BY LABOR UNIONS AND OTHERS THAT IF THEY DEREGULATE, COMPANIES WILL DISMISS A LOT OF THEIR UTILITY WORKERS AND WE'RE NOT GOING TO HAVE LINEMEN AND PEOPLE TO FIX OUR POWER WHEN THE LIGHTS GO OUT IN THE WINTERTIME. HOW DO YOU RESPOND TO THAT?

Aipperspach: I THINK THE RESPONSE IS VERY, VERY STRAIGHTFORWARD. WITH REGARD TO THE LINEMEN, AND THE PEOPLE WHO RUN THE SYSTEM, THAT'S GOING TO CONTINUE TO BE REGULATED. THAT WILL CONTINUE TO BE PROVIDED BY A REGULATED COMPANY. AND THE PROVISIONS IN THIS LEGISLATION GO FAR BEYOND CURRENT LAW ON MAKING SURE THAT WE HAVE A SAFE, DEPENDABLE ELECTRIC SYSTEM. WITH REGARD TO THE COMPETITIVE PARTS OF THE BUSINESS, WE THINK IF WE EMBRACE THESE CHANGES AND ENCOURAGE THE DEVELOPMENT OF ELECTRIC COMPETITION, THERE WILL BE GENERATION CAPACITY BUILT IN IOWA. THERE WILL BE JOBS CREATED IN IOWA AND WORKERS WILL HAVE THE ADVANTAGE. FINALLY, THE PROVISIONS IN THIS LEGISLATION FOR WORKERS WHO ARE AFFECTED BY THIS TRANSITION IN THIS INDUSTRY HAVE STRONGER WORKER PROTECTIONS THAN ANY LEGISLATION ENACTED SO FAR IN THE UNITED STATES.

Yepsen: MR. STEWART, WHAT ABOUT THAT ARGUMENT?

Stewart: MY UNDERSTANDING THAT ORGANIZED LABOR HAS FAILED TO COME TO AN AGREEMENT WITH THE PROPONENTS OF THE LEGISLATION. THEY APPARENTLY BELIEVE THAT THEY ARE NOT RECEIVING ADEQUATE PROTECTION FOR THE IOWA WORKFORCE INVOLVING IN UTILITIES. THE EXPERIENCE HAS BEEN THAT IN DEREGULATED INDUSTRIES, WORKERS ARE ONE OF THE FIRST COSTS TO GO.

Yepsen: WELL, WHAT ABOUT THE FLIP SIDE OF THAT ARGUMENT, WHICH IS THE UNIONS ARE JUST UP THEIR PROTECTING THEIR FEATHERBEDDING, THAT THEY'VE GOT WORKERS THAT THEY DON'T NEED, AND THAT A BUSINESS OUGHT TO BE ENTITLED TO TRIM ITS WORKFORCE TO MAKE A PROFIT?

Stewart: I DON'T BELIEVE THE UTILITIES HAVE WORKERS THEY DON'T NEED. I BELIEVE THEY'VE ALREADY CUT BACK IN THE PAST FEW YEARS. LAST YEAR WE CONDUCTED MEETINGS AROUND THE STATE, AND WE HEARD COMPLAINTS THAT UTILITIES HAVE LAID OFF WORKERS AND, AS A RESULT, WHEN POWER LINES WENT DOWN, WHEN THERE WERE TROUBLE REPORTS, IT TOOK LONGER TO GET SERVICE RESTORED.

Glover: MR. AIPPERSPACH, ONE OF THE ISSUES THAT'S BEEN RAISED IN THIS WHOLE DEBATE ABOUT THE UTILITY INDUSTRY IS THE DEVELOPMENT OF ALTERNATIVE SOURCES OF ENERGY. HOW WOULD THIS LEGISLATION HELP ENCOURAGE THE DEVELOPMENT OF ALTERNATIVE ENERGY SOURCES. WIND, WHATEVER?

Aipperspach: THE REASON GOVERNOR VILSACK IS IN SUPPORT OF ESPECIALLY THE ENVIRONMENTAL PART OF THIS LEGISLATION IS IT DOES PROVIDE SIGNIFICANT FINANCIAL RESOURCES: $53.5 MILLION A YEAR THROUGH THE YEAR 2016, THREE-QUARTERS OF A BILLION DOLLARS FOR US TO STIMULATE THE DEVELOPMENT OF RENEWABLE ENERGY RESOURCES, WIND POWER, BIO MASS, USING THINGS LIKE SWITCHGRASS AND OTHER OPPORTUNITIES.

Glover: HOW DOES THAT WORK?

Aipperspach: THE DEVELOPMENT COSTS OF THESE ALTERNATIVE ENERGY SOURCES, AT THIS POINT IN TIME, CAUSES THE PRICE FOR THAT TYPE OF ENERGY TO BE HIGHER THAN THE TRADITIONAL ENERGY SOURCES. AND WHAT THESE FUNDS ARE MADE AVAILABLE TO DO IS TO BUY DOWN THAT PRICE SO THAT IT CAN BE PRICED COMPETITIVELY UNTIL IT FURTHER DEVELOPS AND CAN STAND ON ITS OWN. IT'S A SUBSIDY. IT'S A BIT LIKE DEVELOPING ETHANOL.

Glover: ALL RIGHT. MR. STEWART, YOU DON'T HEAR THAT ARGUMENT GETTING WIDE SUPPORT AMONG ENVIRONMENTAL GROUPS. THERE'S AN ARGUMENT OVER THERE. WHAT'S YOUR VIEW?

Stewart: I SUPPORT THE GOVERNOR'S POSITION ON THE ENVIRONMENTAL IDEAS IN THE BILL. THE DIFFICULTY WITH THE AMENDMENTS THE WAY THEY'RE WRITTEN TODAY IS THAT IOWA UTILITIES COULD RECEIVE CREDIT FOR RENEWABLE ENERGY RESOURCES REGARDLESS OF WHEN THEY WERE CONSTRUCTED AND REGARDLESS OF WHERE THEY'RE LOCATED IN THE UNITED STATES. I DON'T BELIEVE RENEWABLE ENERGY FROM CALIFORNIA IS GOING TO DO ANYTHING TO IMPROVE IOWA'S AIR QUALITY OR WATER QUALITY.

Yepsen: IS THAT CORRECT?

Aipperspach: I THINK THAT'S INCORRECT. IN FACT, THE PROPOSAL BY THE DEPARTMENT OF NATURAL RESOURCES WHICH, INTERESTINGLY, IS IN CONFLICT WITH THE GOVERNOR'S PROPOSAL, WOULD SUGGEST THAT YOU MANDATE THAT COMPETITIVE ENERGY PROVIDERS HAVE A CERTAIN AMOUNT OF RENEWABLE ENERGY IN THEIR ENERGY MIX, AND IT DOESN'T DICTATE WHERE THAT ENERGY WOULD COME FROM. SO INDEED POWER COMPANIES COULD TAKE CREDIT FOR RENEWABLE ENERGY THAT'S DEVELOPED ELSEWHERE IN THE COUNTRY, AND YOU REALLY AREN'T DEVELOPING RENEWABLE RESOURCES IN IOWA LIKE THE CURRENT AMENDMENT WOULD SUGGEST WE DO.

Yepsen: MR. STEWART, IT'S MY UNDERSTANDING THAT CURRENTLY ABOUT 2 PERCENT -- A LITTLE OVER 2 PERCENT OF OUR POWER -- COMES FROM ALTERNATIVE SOURCES, LIKE WIND ENERGY, AND THAT THIS BILL WOULD REQUIRE THAT TO GROW TO 8. WHAT'S WRONG WITH THAT? THAT'S QUADRUPLING THE AMOUNT OF ALTERNATIVE ENERGY WE HAVE IN IOWA. IT SOUNDS LIKE A PRETTY GOOD DEAL.

Stewart: THERE'S NOTHING WRONG WITH IT IF IT ACTUALLY HAPPENED. THE DIFFICULTY IS THAT IT BASICALLY -- THE WAY THE BILL IS WRITTEN, IT BASICALLY PUTS THE BURDEN ON THE DEPARTMENT OF NATURAL RESOURCES TO ESTABLISH THE RENEWABLE ENERGY PRODUCTION IN THE STATE OF IOWA.

Aipperspach: I THINK IT'S ABOUT ACCOUNTABILITY. THE DEPARTMENT OF NATURAL RESOURCES WILL BE ENTRUSTED WITH THREE-QUARTERS OF A BILLION DOLLARS TO DEVELOP RENEWABLE ENERGY. AND WHAT THIS LEGISLATION SUGGESTS IS WE SET ENERGY GOALS FOR THE STATE OF IOWA TO REACH RENEWABLE LEVELS, AND WE HAVE A WAY OF MARKING PROGRESS ON HOW WELL WE'RE INVESTING THAT MONEY THROUGH THE DEPARTMENT OF NATURAL RESOURCES.

Yepsen: I WANT TO GO BACK TO SOMETHING MIKE MENTIONED· THIS ARGUMENT BETWEEN ENERGY-EFFICIENCY PEOPLE AND PEOPLE WHO WANT ALTERNATIVE ENERGY. MR. AIPPERSPACH, ALL THAT MONEY COMES OUT OF THE SAME POT. DO WE NOT SET UP A CONFLICT HERE WHERE WE PIT PEOPLE WHO WANT TO HELP LOW-INCOME PEOPLE OR PEOPLE WHO WANT TO DO ENERGY EFFICIENCY AGAINST THE ADVOCATES OF WIND POWER?

Aipperspach: THE LOW-INCOME PEOPLE HAVE A $23.5 MILLION FUND. A PART OF THAT FUND IS FOR ENERGY EFFICIENCY FOR LOWER-INCOME PEOPLE. SO THAT'S DEDICATED JUST TO LOW-INCOME PEOPLE. WE THINK THAT THE MARKETPLACE IS GOING TO DEVELOP EFFICIENCIES. IT'S ALSO GOING TO ENCOURAGE THE DEVELOPMENT OF RENEWABLE ENERGY. AND WE THINK THAT WITH THESE RESOURCES INVESTED WISELY BY THE DEPARTMENT OF NATURAL RESOURCES, WE'RE GOING TO BE ABLE TO TAKE ADVANTAGE OF USING THOSE RESOURCES EFFECTIVELY. AND WE DON'T KNOW WHAT PART OF THE MONEY OUGHT TO GO TO ENERGY EFFICIENCY AND WHAT PART TO RENEWABLE ENERGY, BECAUSE YOU CAN'T PREDICT HOW MUCH OF IT THE MARKET IS GOING TO TAKE CARE OF.

Yepsen: MR. STEWART, ARE WE PITTING ENERGY EFFICIENCY AGAINST RENEWABLE ENERGY?

Stewart: IT'S MY UNDERSTANDING THAT'S WHAT THE DEPARTMENT OF ENERGY -- OR THE DEPARTMENT OF NATURAL RESOURCES -- CONSIDERS THE EFFECT TO BE, THAT IS, THE BURDEN IS GOING TO BE ON THE DNR TO DEVELOP THE RENEWABLE ENERGY RESOURCES AND LITTLE WILL BE LEFT OVER TO FINANCE ENERGY EFFICIENCY, DESPITE THE FACT THAT ENERGY-EFFICIENCY PROGRAMS HAVE VERY GOOD COST-BENEFIT RATIOS IN IOWA.

Aipperspach: IT'S ALSO IMPORTANT TO ACKNOWLEDGE THAT NEXT YEAR ALL OF THE MONEY CURRENTLY BEING INVESTED IN ENERGY EFFICIENCY AND RENEWABLE ENERGY UNDER CURRENT LAW GOES AWAY. SO WITHOUT LEGISLATION THERE WILL BE NO FUNDS TO DEVELOP ENERGY EFFICIENCY, RENEWABLE ENERGY, OR A LOW-INCOME FUND.

Yepsen: WHAT ABOUT THAT, MR. STEWART? ARE YOU TURNING DOWN A GOOD DEAL HERE?

Stewart: THE LEGISLATURE COULD ENACT LEGISLATION THAT WOULD ALLOW ENERGY-EFFICIENCY PROGRAMS TO CONTINUE, AND TO BE ADMINISTERED BY THE DNR. I WOULD SUPPORT THAT.

Borg: MR. AIPPERSPACH, EXTENDING THE ENVIRONMENTAL CONSIDERATIONS HERE, WHY NOT BUY OUR POWER OUTSIDE THE STATE? WHY BUILD, FOR ENVIRONMENTAL REASONS, POWER CAPACITY IN THIS STATE?

Aipperspach: WE THINK THERE'S AN OPPORTUNITY TO DEVELOP AN INDUSTRY HERE. WE'VE ALREADY HAD SOME GOOD SUCCESS DEVELOPING WIND ENERGY. IF YOU DRIVE UP BY STORM LAKE OR UP BY CLEAR LAKE, YOU CAN SEE THE ELECTRICITY THAT'S BEING GENERATED IN THAT WAY. IT'S AN OPPORTUNITY TO DEVELOP AN INDUSTRY. ALSO, BY DEVELOPING THE RENEWABLE ENERGY RESOURCES CLOSE TO IOWA COMPANIES WHO WOULD USE IT, IT'S LESS EXPENSIVE TO MAKE IT AVAILABLE.

Glover: MR. AIPPERSPACH, ISN'T ONE OF THE FUNDAMENTAL PROBLEMS YOU HAVE AT THE HILL IN THIS LEGISLATION IS YOU HAVEN'T SOLD THE PUBLIC ON IT?

Aipperspach: I THINK THAT'S BEEN MISREPRESENTED. I THINK THE PUBLIC HAS HAD A GREAT OPPORTUNITY TO UNDERSTAND THIS ISSUE. BACK IN 1996 THE IOWA UTILITIES BOARD ESTABLISHED AN ADVISORY COUNCIL MADE UP OF REPRESENTATIVE FOLKS FROM ALL ACROSS THE STATE OF IOWA. THEY HELD SEVERAL PUBLIC MEETINGS. THEY DEVELOPED SEVERAL POSITION PAPERS DESCRIBING THE ISSUE. "IOWANS FOR ELECTRIC CHOICE" LAST YEAR -- I CONDUCTED 30 TOWN MEETING, I VISITED WITH SERVICE CLUBS, AND WE'VE TAKEN EVERY OPPORTUNITY TO LET PEOPLE BE MINDFUL OF THIS. WE'VE GOT A WEBSITE TALKING ABOUT THIS ISSUE. I THINK IT'S INAPPROPRIATE TO SUGGEST IOWANS HAVEN'T HAD AN OPPORTUNITY, IF THEY CHOSE TO, TO UNDERSTAND THIS LEGISLATION.

Borg: WE'RE OUT OF TIME BUT THANK BOTH OF YOU FOR HELPING US UNDERSTAND THIS TODAY. ON OUR NEXT EDITION OF IOWA PRESS, WE'LL CONTINUE OUR FOCUS ON THE IOWA STATEHOUSE AND ON THE PROGRESS OF THE 78th IOWA GENERAL ASSEMBLY. OUR TEAM OF IOWA PRESS REPORTERS WILL BE HERE ASSESSING THE LEGISLATIVE SESSION OF 2000 AND REVIEWING THE ISSUES THAT PARTLY DOMINATE THE POLITICAL LANDSCAPE IN THIS ELECTION YEAR. THAT WILL BE NEXT SUNDAY AT NOON AND 7:00. AND WE CLOSE WITH THIS PROGRAM REMINDER: NEXT SUNDAY, AS EARTH WEEK 2000 GETS UNDERWAY, WE'VE PLANNED A SPECIAL EDITION OF IOWA PRESS TO DISCUSS IOWA'S ENVIRONMENT WITH A LEGISLATIVE PERSPECTIVE. JOINING US IS SENATOR MERLIN BARTZ OF GRAFTON. HE CHAIRS THE NATURAL RESOURCES AND ENVIRONMENT COMMITTEE IN THIS SENATE; AND REPRESENTATIVE BILL WITT OF CEDAR FALLS, THE RANKING MEMBER OF THE ENVIRONMENTAL PROTECTION COMMITTEE IN THE IOWA HOUSE. THAT'S NEXT SUNDAY... A REPORTERS' ROUNDTABLE AT NOON AND 7:00, AND THEN A SPECIAL EDITION ON THE ENVIRONMENT AT 7:30. I HOPE YOU WATCH. UNTIL THEN, I'M DEAN BORG, AND THANKS FOR JOINING US TODAY.

FUNDING FOR IOWA PRESS WAS PROVIDED BY FRIENDS OF IOWA PUBLIC TELEVISION. AND BY THE IOWA BANKERS ASSOCIATION... FOR PERSONAL, BUSINESS, AND COMMERCIAL NEEDS, IOWA BANKS HELP IOWANS REACH THEIR FINANCIAL GOALS. AND BY THE ASSOCIATED GENERAL CONTRACTORS OF IOWA, THE PUBLIC'S PARTNER IN BUILDING IOWA'S HIGHWAY, BRIDGE, AND MUNICIPAL UTILITY INFRASTRUCTURE.