Earlier, the EPA had issued regulations allowing public utilities up to 21 years to remove dangerous levels of lead from drinking water.

The Code allowed utilities to partially forgive debt from unpaid bills in return for meter installation.

And many more may do so as a result of state action last month lifting price controls and allowing utilities to base prices on market conditions.

The pollution-credit system allows utilities that cut emissions more than required to sell their excess reductions as credits to other companies.

And they contain an innovative pollution-trading system that would allow clean utilities to sell "credits" to dirty ones.

Some regulators allowed utilities to favor the sister companies with long-term contracts even if they did not offer the best price for electricity.

He worries, moreover, that some state regulators will balk at allowing utilities to participate in a national market for pollution rights.

Wholesale trade has historically played an important role, allowing utilities to reduce power costs, increase power supply options, and improve reliability.

The law also allowed utilities to earn extra pollution credits, a scheme tied to the two phases of the cleanup program.

California regulators refused to allow local utilities to raise prices, so they threatened bankruptcy.