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Defining the New Policy Conflicts

Failing to address and adapt to the new ratemaking realities could result in increased costs for the economy.

Fortnightly Magazine - July 2006

Santa, “Natural Gas Regulation and Markets,” Presentation at the PURC Annual Conference, February 2006 and Nora Brownell, “Energy Policy in the US: What We've Learned and Future Directions,” Presentation at the PURC Annual Conference, February 2006.

19. Nora Brownell, February 2006.

20. Donald F. Santa, February 2006; and the EIA Annual Energy Outlook 2006 at http://www.eia.doe.gov/oiaf/aeo/pdf/0383(2006).pdf.

21. Donald F. Santa, February 2006.

22. Susan Story, “Securing our Energy Future,” Presentation at the PURC Annual Conference, February 2006.

23. J. Alan Beamon, February 2006.

24. Nora Brownell, February 2006.

25. See Andrew A. Green, “BGE Rate Relief Promised,” Baltimore Sun, April 12, 2006. Negotiations had been undertaken to smooth the rate increase over time and BG&E’s parent, Constellation, was willing to take on some of the burden as well in exchange for approval of the proposed merger with FPL Group.

26. See http://www.fpl.com/rates/fuel_request.shtml for details on the rate increase. For industrial customers the rate increase was an even larger percentage at 41 percent.

27. This unresolved conflict is evidenced by the inability of the Bush administration and environmental and energy interest groups to come to any agreement on climate-change policy. Moreover, the conflict among cost, security, and environment, as well as a jurisdictional (authority) conflict, is also evident in the willingness of some states to consider opting out of the offshore drilling moratorium for natural gas, while other states remain steadfastly committed to it. See Donald F. Santa, February 2006, to see the potential gas reserves in the areas subject to the moratorium.

28. Robert W. Gee, “The Energy Policy Act of 2005: Redefining the Federal-State Relationship,” Presentation at the PURC Annual Conference, February 2006.

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