ACCA Says Utilities Should Focus on Energy

April 6, 2001
/ Print / Reprints /
/ Text Size+
ARLINGTON, VA — In written testimony submitted to the Federal Trade Commission on March 30, the Air Conditioning Contractors of America (ACCA) urged the commission to take federal action to prohibit cross-subsidization by the nation’s utilities entering into non-core businesses. In its testimony, ACCA said such a step is necessary “in order to guarantee competition that is open and fair.”

While ACCA and its members support the free market and fair competition, ACCA President Larry Taylor said contractors oppose a utility’s entry into the hvacr field when ratepayers are subsidizing that entry.

“All over the country, utility companies are using ratepayer dollars to subsidize the utility’s entry into non-utility businesses,” said Taylor, who is also president of Air Rite A/C Co., Fort Worth, TX. “Not only is that entry unfair to legitimate small businesses and to ratepayers, it is inappropriate in this time of a national energy emergency. Utilities ought to get back to doing what they are expected to do — provide for the safe and efficient distribution and transmission of energy.”

According to Taylor, ACCA supports definitive language prohibiting cross-subsidization in any federal legislation or regulation dealing with the deregulation of the retail sales of electric power. In the eyes of ACCA, such actions must include a definition of cross-subsidization sufficient to capture transfers of both tangible assets (shared tools and equipment), as well as intangible assets (shared logos and trademarks). At the very least, ACCA said it believes that federal actions must condemn cross-subsidization as contrary to the goal of fair and open competition, and provide specific examples of inefficient cross-subsidies to guide state commissions in their consideration of the many issues surrounding electric deregulation.

For a copy of ACCA’s written testimony to the FTC, contact John Herzog at ACCA (703-575-4477) or visit ACCA’s website,

Publication date:04/09/2001

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by Paula Liegl

You must login or register in order to post a comment.



Image Galleries

2014 World Energy Engineering Congress

Scenes from the 2014 World Energy Engineering Congress in Washington, D.C.


NEWSMakers: Kari Arfstrom

Kari Arfstrom, executive director of the HVACR Workforce Development Foundation, talks about the upcoming HVACR & Mechanical Conference. Posted on Jan. 23.

More Podcasts


NEWS 01-19-15 cover

2015 January 19

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Regional Standards

With regional standards for a/c equipment going into effect in 2015, how do you think it will impact the industry?
View Results Poll Archive


2015 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con