| The deregulation of electric utilities was brought about by the Federal
Energy Policy Act (FEP Act), signed by President George Bush in
October of 1992. Since that time, all fifty states have undertaken
investigations of the impact of deregulation on their citizens, and
the best way to implement the changes mandated by the FEP Act. In
fact, several states' electrical utilities are deregulated.
The core of the changes heralded by
deregulation is this: In the past, your company purchased electrical
power and distribution services from a local or regional electric
company, which was under the regulatory control of various State and
Federal agencies. That system is now being replaced by open
competition among energy producers, with your current, local utility
company providing distribution, installation, and repair services.
Deregulation of the electrical utility industry is analogous to what
took place when the national telephone system underwent similar
changes, beginning in the 1980s. The bottom line is that you will no
longer be limited to a single choice when trying to decide who to
buy your electricity from.
Where is URC's place in all this? Our goal
is to be an objective partner to our clients, ensuring that they
understand all the available options under the new deregulated
system and that they obtain the best possible value from each
segment of the generation, transmission, and distribution system. We
are not affiliated with any utility company, marketing firm, or
electricity brokerage company. We represent only our client's
interests.
There are, of course, many other
complicated facets to this issue. Stranded costs, cherry picking,
retail wheeling; these are all terms you will be hearing more and
more as each state works its way toward finalizing the structure of
a deregulated electric utility industry. URC is prepared to work
with you so you can be sure your company is taking advantage of
every opportunity offered under this new system. |
