Washington (Platts)--30Jul2007

The National Association of Manufacturers on Monday urged members of the
US House of Representatives to reject an expected floor amendment to a broad
energy bill that would require utilities to obtain 20% of their power supply
from renewable resources by 2020, saying it is "deeply concerned" the proposal
would raise electricity prices.

     Representative Tom Udall, a New Mexico Democrat, is expected to offer the
amendment when the House begins debate this week on a wide-ranging energy
bill. An effort to include a renewable energy portfolio standard in a Senate
energy bill failed earlier this summer.

     "Electricity costs are a significant factor for US businesses," NAM said
in the letter, adding that "[a]ffordable and reliable electricity is essential
to the long-term health of the US economy and its citizens."

     "Almost half of the states have already implemented renewable portfolio
standards based on their available renewable energy resources," the
organization said. "These state programs set percentage requirements and
timelines that the states believe are achievable. We are deeply concerned that
the 20% federal RPS amendment will preempt, or conflict with, many of these
state programs. At the same time, other large regions of the country are not
rich in renewable resources," NAM added. 

     While NAM "supports renewable energy as an important part of our energy
mix," it believes that "extending tax credits for renewable power systems and
providing incentives for the construction of solar plants and large-scale wind
farms is a more direct and efficient way for the federal government to support
the development of renewable energy," it said.

     "We urge you to carefully consider the negative impact a 20% RPS
requirement will have on energy costs and our nation's competitiveness, and
oppose any efforts to impose a mandatory federal RPS," the group said.