Labor got on well with monopoly.
But now, if experience is any guide,
expect a stiff fight for benefits, jobs, and wages.
At this very moment, utility chief executive officers (CEOs) are planning for the future.
The Iowa Utilities Board (IUB) has set rates and terms for unbundled interconnection services that U S WEST Communications, Inc., a local exchange carrier (LEC), must provide to other carriers seeking to provide competitive local service. The IUB ruled that U S WEST must use the Total Service Long Run Incremental Cost method to set prices for the use of its facilities. It also ruled that the LEC may include "an appropriate markup" in the rates as well as a contribution to shared and common costs of the local loop.
The United States Telephone Association has called for more voluntary interconnection agreements between telecom companies, claiming that the resulting competition will bring consumers more choices. USTA cited more than 50 signed agreements with companies that want to connect to the local network, and nearly 500 ongoing negotiations.
The Federal Energy Regulatory Commission has approved the Gas Research Institute's request for a 20-percent cut in its 1996 research, development, and commercialization budget.
Thermal Energy Storage: Putting
Green Solutions
on SiteBy John E. Flory, Loren W. McCannon, Stan Tory,
Donald L. Geistert, and James PattersonA recent study coordinated by the California Energy Commission shows how stored-cooling applications provide both environmental and competitive benefits in a summer-peaking market.As California prepares for a more competitive electric future, the California Energy Commission (CEC) is taking another look at some key customer technologies.
The Oregon Public Utility Commission (PUC) has terminated an alternative regulation plan adopted for U S WEST Communications, Inc. a telecommunications local exchange carrier (LEC), in 1991.
Objective. Estimate market impacts of "1+" dialing parity plus eliminating traditional LATA boundary.
Model. Measure shifts in market dominance between major competitors, by assuming price changes and estimating revenue impacts across range of demand elasticities, to reflect both changed rates and market shares. Also consider changes to revenues collected by U S WEST through carrier access charge (CAC).
Scope. Limited to residential toll calls carried by AT&T and U S WEST. Does not examine commercial toll customers.
Data.
Now that incumbent LECs must offer all services for resale, state regulators must decide the appropriate level of discount for the new resale tariffs.
Discounts could put incumbent LECs at a disadvantage, since many local exchanges already price below the cost of service, particularly for basic residential access.
By Michael H. Lee and William A. RosquistThe Vanishing LATA:
Pricing Chasms
and Clashing Markets
for Toll Service
Wide disparities can occur in toll rates within some states (em a legacy of multiple LATAs. Now, with
barriers falling, where will prices go?
LEASING THE LOOP:
Telephone Service Resale in the Local ExchangeResellers want steep discounts, but local rates don't always cover costs. And reselling local lines provides little incentive
to upgrade the network.The Telecommunications Act of 1996 (Act) compels local exchange carriers (LECs) to sell telephone service to competitors (em who would then resell to the public at retail. Instead of constructing their own local distribution networks, competitors would buy local telephone service from the existing carrier at discounted rates.
As FERC moves forward, most state legislators have remained content to sit back and wait for others to act. Part of this reticence stems from politics—the difficulty of changing course, invading someone else's turf, or tackling a new subject outside one's area of expertise. Legislators view problems differently than do regulators.
Lawmakers see different imperatives than regulators or industry execs, such as protecting the tax base for the local community.