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The Electric Competition Debate in...Ohio

Fortnightly Magazine - May 15 1998

aggregated group? How is this representative of customer choice?"

SEN. RHINE L. MCLIN (D): "The concept of the RMA is too complex and too costly, adding a layer of bureaucracy which seems to defy the idea of deregulation entirely¼ the pooling of these consumers is tantamount to government authorized 'slamming.'"

REP. LYNN E. OLMAN (R): "The report places a high priority on consumer protection¼ The RMAs are designed to avoid some of the real or perceived pitfalls associated with utility deregulation as it related to customer choice and protection against¼ 'market power abuse.' ¼ The Report's proposal to assign consumers to a supplier if they do not select one seems to consciously limit a consumer's options. The legislation should consider alternatives that provide less restrictive consumer choice."

REP. DARRELL W. OPFER (D): "I cannot support the¼ co-chairs' recommendations for electric restructuring in Ohio¼ Why is the option of transmission divestiture (em the traditional method to mitigate market power (em not further explored[?] ¼ Participation in the ISO is effectively mandated since the only way utilities can recover government-approved transition costs is through ISO participation."

SEN. ROY L. RAY (R): "I would like to begin by focusing [on] ¼ the need to study tax issues¼ the need to reduce regulation in moving toward deregulation, and the need for the securitization of transition costs¼ Securitization can reduce the amount of utilities' transition costs, thus reducing consumers' costs."

REP. FRANK SAWYER (D): "I believe the report falls short in specifying how Ohio will deal with the utility workers that will be displaced by deregulation¼ I'm also reluctant to support RMAs, in part because I don't understand them, and because no other state has chosen to go down this road¼ it would seem to me that we are taking the artificial service territories that exist to day and simply redrawing the lines¼ even though it is temporary, we hand over a great deal of authority to the PUC to draw the lines."

SEN. GARY C. SUHADOLNIK (R): "The creation of RMAs by the PUC¼ would inevitably be subject to strategic `gerrymandering'¼ It would be difficult for generation service providers to bid on all RMAs at once, not knowing in advance how many contracts they will be awarded and, therefore, how much generation capacity they will have."

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