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.
