The Wisconsin Public Service Commission (PSC) has decided to add a "performance mechanism" to its regulations governing demand-side management (DSM) efforts. The PSC found that some utilities were...
Implement incentive rates to encourage utilities to market additional energy to industrial customers in the short run.
s Adopt centralized dispatching of electricity in order to integrate and use all available electric resources more efficiently.
s Develop power brokerage and auction markets to facilitate the competitive allocation of power requirements among producers.
s Align regulatory responsibility between the FERC and state commissions to promote more consistent and equitable regulatory policies.
s Develop interstate compacts among regulators in different regions to make the best use of an integrated generation market.
s Require nondiscriminatory wheeling of power between individual customers and producers to eliminate unjustifiable differences in price. (We will then have a national energy market.)
s Unbundle electric rates (em for example, itemize fuel costs, transmission costs, and environmental control costs.
s Relax regulatory controls over generation
investments that are subject to effective competition, thereby promoting a diversity of generating investments.
s Permit specialized agreements with individual customers that reflect individual circumstances to increase both short- and long-term energy sales
s Develop spot and future markets to increase the options for expansion of capacity and market information.
Many of the issues I discussed then are still relevant today and need to be addressed. Now, finally, we must begin discussion of all the issues surrounding the restructuring of perhaps the single most important industry serving our nation. And we must make some decisions. t
Ruth K. Kretschmer has served on the Illinois Commerce Commission since 1983. Commissioner Kretschmer serves as chairman of the Commission's Gas Policy Committee and is a member of the Electric and Transportation Committees. She is also chairman of NARUC's Committee on Gas. In June 1995 Commissioner Kretschmer was elected president of the Mid-America Regulatory Commissioners. She has served on the board of directors of the Center for Regulatory Studies at Illinois State University since 1985. In January 1989 she was appointed to the Advisory Council of the Gas Research Institute and currently is chair. Commissioner Kretschmer holds a degree from DePaul University in business administration and economics.
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