Demand-side

Let customers choose their own billing format.

The information-management and transaction-cost problems facing deregulated markets are familiar to me. They describe precisely the same barriers I was trying to overcome when I founded Utility.com Inc., an entirely Internet-based energy service provider.

The Internet offers an especially powerful tool for customer service. With deregulation, customers face an enormous learning curve. Not only can they now choose their electric company, but they also must become familiar with new terminology and concepts.

BY WHAT AUTHORITY CAN STATES FAVOR RENEWABLE

energy in a restructured electricity market?

Renewable resource funding marks a major point of contention in utility deregulation. Environmental groups fear that without some form of compulsion or subsidy, or both, renewable resources will not survive in an energy economy based on least direct consumer cost. However, utilities do not want to be saddled alone with the chore of carrying all renewables to market.

Competition abounds at wholesale, but retail is another story.

Will geography, politics and regional economics stand in the way of real choice for electric consumers at the retail level? Consider this tale of two power players.

One competitor, the Indiana Municipal Power Agency, is proud of itself. In its annual report, IMPA says that open access and competition in the wholesale market allowed it to trim wholesale rates for power it delivered to member distribution companies in 1996. "The results were remarkable," the report reads.

Sound bites from state and federal regulators.

Economic Development Programs. Connecticut allows LDC to redirect margin-sharing funds from interruptible and transportation sales to support economic development and reduce residential hardship assistance balances. Caps annual program funding at $6 million. Rejects proposal that shareholder funds match ratepayer contributions. Docket No. 93-03-09 Reopening III, Apr. 25, 1996 (Conn.D.P.U.C.).

Demand-side Management.

Sound bites from state and federal regulators.

Offsystem Gas Sales. Florida permits new LDC tariff for sales to offsystem customers. LDC recovers all variable costs, including $100 administrative charge per transaction; splits nongas charges with firm customers, crediting administrative charges to PGA rate. Docket No. 960185-GU, PSC-96-0482-FOF-GU, Apr. 5, 1996 (Fl.P.S.C.).

Master Metering.

R & D for

a Competitive Power Industry

The secret lies in gaining exclusive-use rights to protect your product or process from your competitors.

The electric utility industry is inherently a high-technology business. Those who ignore this fact for long will fall behind (em not only in using the technology, but also in contending against their higher-tech competitors.

As electric restructuring spreads around the nation and the world, the idea of a "PoolCo" spot market (pool) gains credence. Pools already exist in England, Australia, Norway, Alberta, and Argentina. On December 20,1 the California Public Utilities Commission formally proposed a pool, called the California Power Exchange, to begin operation as of January 1, 1998.

demand-side management programs. A study of the functioning of interim policies on DSM cost-recovery methods indicated that the lost revenue recovery encouraged the utility to meet its conservation resource goals, according to the PSC.

The California Public Utilities Commission (CPUC) has modified its policies on incentive mechanisms for utility demand-side management (DSM) efforts, while adopting new shareholder incentives for Pacific Gas & Electric Co., San Diego Gas & Electric Co., Southern California Edison Co., and Southern California Gas Co.