R.I.: Competition Must Reduce Rates for All

Fortnightly Magazine - November 1 1995
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Working to identify a set of specific issues for consideration in its investigation of competition and open access for the electric industry, the Rhode Island Public Utilities Commission (PUC) has refused to permit additional costs for environmental improvements and the development of renewable resources. Noting that the primary objective of restructuring is to "produce rates for all customers meaningfully lower than they would have under the current system of regulation," the PUC criticized two environmentally-related proposals: 1) accelerated elimination of older, plants with lower emissions performance abilities from the marketplace, and 2) a special "nonbypassable" charge for the recovery of approved investments in renewable and low-emissions generating technologies. The PUC labeled the long-term cost subsidies "anathema" and concluded that placing extra costs "on the wires" opens the door to using a rate mechanism to address other societal or public policy costs. Re Electric Industry Restructuring, Docket No. 2320, Aug. 16, 1995 (R.I.P.U.C.).


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