Fortnightly Magazine - June 1 1995

PURPA: Reform or Repeal?

B. Jeanine Hull

President, Electric Generation Association

Vice President & General Counsel, LG&E Power Inc.

PURPA is not the issue; competition is. PURPA has introduced competition by demonstrating that the generation of electricity is not a natural monopoly. PURPA's faith in competition has proven itself in the form of lower-priced electricity for ratepayers. PURPA has also promoted fuel diversity by creating incentives for utilities to consider renewable fuel options for portions of their capacity needs.

Privatization: Fantasy or Reality?

Randall Hardy

Administrator

Bonneville Power Administration

BPA's central role in the Northwest has no counterpart among the other PMAs proposed for privatization. We hold approximately 45 percent of the market share, serve 85 percent of our customers' load, and provide rate benefits for 85 percent of all Northwest residential consumers.

By contrast, the other PMAs have less than 10 percent of the market in their respective regions.

Customer Focus: Price or Service?

Donald Pardus

Chairman & CEO

Eastern Utilities Associates

Eastern Utilities is committed to creating a company and a culture that goes beyond just delivering electricity. Our primary goal is to compete not just on price but on the value of the total service provided. Customers are the driving force in any competitive marketplace, and our commitment to our present and future customers is to deliver services that the customer values and needs.

Power Marketers: Friend or Foe?

In our vision of the future, today's distribution function will be divided into two companies (em a poles and wire function and a merchant function. The merchant company would provide value-added products and services to the customer. We have used credit cards, branding, and other marketing gimmicks to sell our services, particularly demand-side management (DSM). In the future, however, I think there will be greater emphasis on the types of energy-purchasing alternatives we provide. Pricing options are one offering that we would expect to expand.

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