Fortnightly Magazine - October 1 1995

Electric Industry Restructuring: The States Forge Ahead

About 30 states have begun (em

either through the legislature, the utility commission, informal working groups, or some combination of these (em to consider issues such as retail wheeling, unbundled utility structures, and alternative rate regulation.1 California's "Blue Book" hearings have drawn the most attention, but significant efforts are also underway elsewhere. Although each state is approaching the issue in its own way, successful industry restructuring will ultimately require coordination across state lines.

California DSM: A Pyrrhic Victory for Energy Efficiency?

California has led the nation in utility expenditures for ratepayer-subsidized energy conservation, also called

demand-side management (DSM).1

With broad-based support from utilities, consumer representatives, environmentalists, the California Public Utilities Commission (CPUC), and the California Energy Commission (CEC), some $1.8 billion has been spent since 1990 (and $

Ontario Faults Gas DSM Plan

While setting rates for Union Gas Ltd., a natural gas local distribution company (LDC), the Ontario Energy Board found the LDC's demand-side management (DSM) plan deficient and ordered shareholders to bear the cost of any required remedies. The Board found, however, that denying the DSM budget would make it harder for the LDC to accomplish energy conservation and environmental objectives and, would run contrary to the public interest.

V