19-A-1 - Atty's Report - CAPP - Laserfiche WebLink

Home Browse Search

plans proceed much further anywhere, the sobering example of California and the prospects of a long, hot summer suggest that a few circuit breakers are needed to protect consumers: Insulate vulnerable consumers from price spikes. People with low incomes and elderly people living on fixed incomes are often the most dependent on reliable elec- tricity and the least able to withstand high prices or sudden price spikes. But whether they live in states that have deregulated or places where pubiic-utility boards must still approve rate changes, these people need help paying their utility bills so that they are not forced to choose between food and potentially life-saving air conditioning. The federal government's Low-Income Home EnergyAssistance Program (LIHEAP) is designed to help meet the needs of those consumers. But its resour<es are inadequate to meet the greater need that has been the byproduct of deregulated-energy markets. Indeed, in the aftermath of this winter's heating season, the LIHEAP coffers have already been depleted. Congressional action to authorize supplemental funding for the program is badly needed. ► Boost residential consumers' bargain_ ing power. Acting alone, most individual homeowners do not have sufficient infor- mation and expertise to sort out the often- ephemeral differences between rate plans of rival electricity companies. Nor do they have the bargaining clout that commercial users wield to negotiate advantageous terms directly from the power suppliers. Fortunately, there are ways for consumers to band together through town, county, or municipsl cooperatives. Aggregate purchas- ing pools in places like Barnstable County in 1%Iassachusetts and several counties in a 0 Y U C > m 0 ~ Comin9 unPlu99ed The states of deregulation Electric-utility deregulation has become the law appraved. Other deregulation-related of the land in 23 states and the District of problems that have cropped up in- ~ Columbia. This table summarizes the status of clude system-relia6ility problems, = the market-opening plans in terms of what the or the challenge some power com- - laws provide and how developments have panies have experienced moving played out so far. Most of the states below sold kilowatts from the generating _ consumers on the idea of deregulation by prom- plants through the transmission ising rate cuts or rale ireezes to deliver lower grid to where consumer demand electric bills. But in many states (indicated by a exists. Faced with the prospect check in the appropriate column), those low- of voters made irate by soaring ~ - price initiatives have ignited little competition to electric bills, some state regulators have ' ~ date or have evaporated entirely as utilities pres- ordered their deregulation plan implemen- sure states to pass on rate increases pending or tation delayed. SCHEDULED START OF WHAT THE COMPETITION FOR DEREGULATION STATE RESIDENTIAL CONSUMERS PL AN PROVIDES CURRENT STATUS AND NEAR-TERM PROSPECTS Rate cuts Rates capped or Little competition Rate increase pending System-reliability Deregulatlon plan frozen until to date or approved problems Implementatfon delayed Arizona early 2001 2•7.5 2004 ✓ ✓ Arkansas 2003 0 n/a n/a ✓ I Califomia early 1998 10 2002 ✓ ✓ ✓ ' Connecticut mid-2000 10 2003 ✓ Detaware late 2000 up to 7.5 late 2003 ✓ ✓ Iilinois mid•2002 up to 20 2005 n/a ✓ Maine early 2000 2.5-10 early 2002 ✓ Maryland mid•2000 up to 7.5 2004•2008 ✓ Massachusetts early 1998 15 2004 ✓ ✓ Michi an early 2002 5 2005 n/a ✓ Montana mid•2004 0 2002 n/a ✓ ~ Nevada early 2000 0 early 2003 n/a ✓ ~ New Hampshire mid-2001 17 early 2004 n/a New Jersey mid-1999 10 mid•2003 ✓ New Mexico early 2007 0 n/a n/a ✓ New York mid•2001 3-10 inde(inite n/a ~ Ohio earl 2001 2-3.5 2004•2006 ✓ Oklahoma mid•2002 0 mid•2005 n/a Pennsylvania early 1999 0 2004•2010 ✓ ✓ Rhode Island early 1998 0 n/a ✓ ✓ Texas earl 2002 0-6 2005 n/a ✓ Vir inia 2002-2004 0 mid•2007 n(a ✓ ul-~ 111...;..;, iata 70ni 0 20tl n/a .,y., JUNE 2001 0 CONSUMER REPORTS 55