As regulators continue to investigate industrywide restructuring as an answer to regional electric rate disparities and calls from large consumers for price reductions, the trend of dealing with...
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California Revises "Blue Book" Schedule
The California Public Utilities Commission (CPUC) has issued an interim decision on restructuring the California electric industry (R.94-04-031). The decision calls for the CPUC to propose a policy decision for comment on March 22, 1995, and to adopt a policy decision 60 days later. That policy decision would then become effective in September 1995. To that end, the interim decision establishes a working group to examine how existing social, economic, and environmental programs would hold up under the range of proposed restructuring models. To date, the CPUC has generalized the proposals into three models:
Wholesale and retail reform with retail wheeling; CPUC would not guide development of market mechanisms and price revelation tools
Wholesale and retail reform with a mandatory pool for all purchasers to transact business; includes the ability to enter into financial "contracts for differences" outside the pool
Wholesale reform with a mandatory pool through which all utilities transact business; retail customers purchase from present provider.
The CPUC noted that the California Environmental Quality Act might have bearing on the restructuring, but refrained from ordering an environmental impact report.
Headlines were written by Lori A. Burkhart, associate legal editor, and W. Lynn Garner, senior writer.
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