State PUCs Show Split Personality

 

 

While electric restructuring pauses, telecom pushes forward.

No matter which way they turn, state public utility commissions (PUCs) have their work cut out for them.

While federal policy-makers push ahead with wholesale market reforms in the electricity sector, many at the state level now call for a cautious approach to protect consumers.

The same does not appear to be true in the area of telecommunications local exchange service. Although much-publicized statements by federal telecommunications regulators signal a possible shift away from network rates aimed at encouraging new market entrants, state regulators see possible benefits to consumers if a competitive telecommunications market is allowed to mature. Regulators in Kansas tout the significant number of competitors in that state's telephone market, and in Pennsylvania, utility commissioners brag about the success of an outreach program designed to educate consumers about alternative carriers.

However, at the same time, electric market watchers in Ohio, Oregon, and Virginia warn that moves to further deregulate electric service might harm customers rather than help them, especially in the residential sector. The lack of competitive entrants in retail power markets is the most glaring defect. But at the same time, consumers seem alarmed by the recent power market crisis and by troubles associated with the marketing of competitive telephone services and, in Oregon, wary of potential marketing practices and gimmicks.