Fortnightly Magazine - March 15 1996

California Utilities to "Unbundle" Line Extension Costs

The California Public Utilities Commission (CPUC) has directed the state's electric and gas utilities to implement a two-year pilot allowing applicants such as residential real estate developers to design distribution facilities for their projects. (Currently, utilities are responsible for designing distribution plant.) In limiting the experiment to residential projects, the CPUC rejected allegations that the limitation would unfairly deny all ratepayers the immediate benefit of savings associated with the "unbundling of engineering costs" for distribution plant.

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