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Fortnightly Magazine - September 1 1995

that retail markets will not become competitive, no one paying any attention can fail to understand that wholesale markets are extremely competitive. Whose capacity is being deferred as a result of some RUC-passing DSM options? An IPP's, or part of a power marketer's portfolio? Why should retail customers pay for that in the form of higher prices?

Finally, any discussion of DSM selection criteria must recognize that programs that raise prices to "nonparticipants" (as would Mr. Puican's RUC test) are sustainable only as long as all customers are captive and the wires can't be bypassed. If the assumptions that underlie the cost-effectiveness tests drift away from reality, they become meaningless.

John H. Chamberlin

Executive Vice President

Barakat & Chamberlin, Inc.

Oakland, CACORRECTIONAn error on page 30 of Wayne Seden's article, "Utility R&D: The Cutting Edge of Competition," (August 1995) attributes a mere 13-percent reduction in radiation levels to the AP/Can-Derma demonstration at Consolidated Edison's Indian Point 2 nuclear plant. In fact, the demonstration reduced radiation levels 87 percent. The editors apologize to the author and the utility.

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