Analysis Group

The Fallacy of High Prices

We are better off under restructured electric markets.

The most important action regulators can take to minimize consumer electricity costs is, and will continue to be, ensuring competitive wholesale markets, while demanding a rich mixture of products from the suppliers in these markets.

People

People for November 1, 2003

New opportunities at the Nuclear Energy Institute, the Analysis Group, Southwest Gas Corp., and others.

People

President Clinton appointed James J. Hoecker chair of the Federal Energy Regulatory Commission. Hoecker, former commissioner of the FERC, replaces Elizabeth Moler who was appointed deputy energy secretary at the Department of Energy.

Walter Massey, president of Morehouse College, was selected by Secretary of Energy Federico F. Peña to replace Robert Hanfling as chair of the Secretary of Energy Advisory Board. Also at SEAB, Skila Harris was elected executive director. Prior to her election, Harris was special assistant to Vice President Al Gore.

Enron Corp. promoted Cynthia C.

Optional Two-Part Tariffs: Toward More Effective Price Discounting

By unbundling usage from access, utilities can maximize contribution to margin and yet still retain load.

With deregulation and industry restructuring, energy utilities face price competition from marketers, brokers, independent producers and even other utilities. To succeed in this environment, utilities will need to develop innovative pricing strategies that better meet customer needs and respond more effectively to competition. The common response by utilities to competition calls for price discounting to retain "at risk"

customers by meeting the competition head-on.