Tuesday, May 6, 2008

Current status of electric utility deregulation

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Electric utility restructuring has found favor in just under 50 percent of the states - generally those with high rates and large industrial customers.

THE INTEREST among states in utility deregulation has not waned, but second-guessing, second thoughts, fine tuning, and foot dragging are common in commissions and state legislatures across the country. The good news is that real rate relief is happening in many of the higher-cost areas.
Deregulation of electric utilities does not mean the same thing in every state proposing or implementing a deregulation plan. Each state's deregulation proposal has a unique perspective and contains rules for at least several of the following: service requirements (including the obligation to serve); wholesale wheeling; retail wheeling; stranded-cost recovery; divestiture requirements; transmission access and control; dispatch rules; and, surprisingly, temporary rate reductions and/or rate freezes for most customer classes. Other issues are also important to some states, including environmental concerns (especially the use of "green" power), large utility market power, and interactions with other states.

Senate Republicans Filibuster Energy Bill

Washington Post | Steven Mufson and Jonathan Weisman | December 7, 2007 10:47 AM

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Senate Democrats failed to muster enough votes this morning to close debate on the energy bill passed by the House yesterday, setting the scene for a new round of negotiations over whether to strip out portions of the tax package and requirements for electric utilities to use renewable energy for 15 percent of their generation.

The Senate voted 53-42 to close debate, falling short of the 60 votes needed to permit a vote on passage even though the leading presidential candidates returned from the campaign trail to bolster the measure's chances.