Public Utilities Reports

PUR Guide 2012 Fully Updated Version

Available NOW!
PUR Guide

This comprehensive self-study certification course is designed to teach the novice or pro everything they need to understand and succeed in every phase of the public utilities business.

Order Now

Consumers: Cost or Benefit?

Fortnightly Magazine - June 1 1996

And I think that's important to have a successful deregulation and competitive market (em that the entire market, all classes of customers, have to be able to push toward benefit, not just a segment of them.

"It is the momentum of the industrials that will make deregulation move quicker to retail than not."

s Customer Transition Charges

"I guess in a pragmatic way, I look at that as something that's going to be a political solution as much as it's going to be one shared by customers and shareholders alike. Now, how it's done (em transition-cost fees or other solutions (em is very much up for discussion and debate right now, and I don't particularly want to jump into that one."

s Retail Wheeling

"They do. And I think very much that they want it. The idea of being able to choose your energy supplier and to choose pricing scenarios that fit the way you live are things that are of great interest.

"Through the experience we've had with our national brand name, EnergyOne, and literally traveling the country . . . there is a great feeling to have the power to choose and not simply to take what's delivered at your door.

"There is a great bit of education going on. People at the commercial level in the smaller businesses don't really understand that choice is something they have. And I think one of the main reasons is the patchwork process of deregulation that we're going through."

s The Environment

"I don't think the environment will be harmed in any way. In fact, I believe there will be benefits that will come to the environment, simply because you're looking at the injection of efficiencies that would never be conceived in an industry, and technologies that would never be conceived in an industry without opening it up to full competition and other players.

"I think the situation with generation is such that many people are going to look for alternatives and not necessarily build as much." t

Richard C. Green, Jr. is chairman and CEO of UtiliCorp United, Inc., a $3.9-billion global energy company based in Kansas City, MO. UtiliCorp's EnergyOne brand is considered a "consumer friendly" energy service. UtiliCorp plans to merge with Kansas City Power & Light Co., creating a $6.4-billion organization.

s Cherry Picking

"I'm not sure retail customers would pay more than they would without competition. In part that depends on how the residual monopoly market gets regulated. It's certainly true that the large industrials are going to have more buying power. But I'm not sure in the long run that it's going to make much difference. In England, for example, large industrial customers ended up paying higher rates than was anticipated.

"Part of it depends on how quickly competition gets spread and how its gets spread. But my guess is in the long run you're going to see load aggregators appearing, although they haven't in natural gas. . . . In fact, that could end up being part of the conditions that could be imposed on retail