CPA Forum on Deregulation: Diverse Panel Reflects Divergent Views

A diverse panel at CPA’s Electric Utility Restructuring Issue Forum reflected the broadly divergent perspectives surrounding this looming issue. Leaders from industry, consumer, union and community organizations brought to the table varied and spirited opinions on how these changes will impact utility rates, tax revenue and service quality.

Maryland state Delegate Leon Billings expressed perhaps the only common theme among most panelists — utility restructuring has not entered the public consciousness in any significant way, and public education is critically needed.

"Since this appeared on the radar screen in the Maryland legislature less than nine months ago, I have not received a single communication, oral or written, from a constituent on the issue," said Billings.

Opinion varied on how low-income communities will be affected by restructuring. Ricardo Byrd, Executive Director of the National Association of Neighborhoods, noted that open competition in electricity will bring businesses into low-income neighborhoods and lower costs for consumers there. Roger Colton, of the Consumer Research Foundation, expressed concern that service quality for these same consumers will go down as rates go up to pay for stranded costs.

The proposed "date certain" by which all states must deregulate their electric industries drew mixed and sometimes heated responses. According to Edison Electric Institute Director Michael Oldak, state governments are best equipped to sensibly deregulate on their own schedules. Leaders from the Enron Corporation and Americans for Affordable Electricity, as well as Byrd, noted that a federal "date certain" will effectively guarantee movement toward restructuring.

CPA will continue to sponsor issue forums on hot issues affecting states and their policy decisions. The deregulation forum was held concurrent with the winter meeting of the National Conference on State Legislatures. Read a state perspective on utility restructuring from Iowa state Senator Pat Deluhery in the October issue of Alternatives.