As the generation side of the electric industry becomes increasingly deregulated and transmission migrates toward common carrier status, an easily administered and fairly applied pricing system must be developed. The concepts of "postage stamp" tariffs and "contract paths" lose all logical viability. They possess no totally encompassing tie between the provider of the service and the revenues for that service.
As the debate over restructuring the U.S. electricity industry moves forward, there comes a host of new theoretical models. Two proposals in particular serve well to frame the debate.
More than a decade ago, at the 1981 Edison Electric Institute (EEI) Fall Financial Conference in Palm Beach, FL, I presented my vision of the future of the electric industry. I called my talk "Let's End the Monopoly." In it I urged, "Let's open electricity generation to competition (em with free entry, no franchises, and no obligation to serve." The response was underwhelming.
From the perspective of the last 14 years, how have my forecasts turned out?
The Florida Public Service Commission (PSC) has decided to expand interconnection for telecommunications switched-access service by requiring local exchange carriers (LECs) to offer virtual collocation services upon request. The PSC approved pricing flexibility in the form of zone density pricing for the new collocation tariffs.
The Florida Public Service Commission (PSC) has decided to expand interconnection for telecommunications switched-access service by requiring local exchange carriers (LECs) to offer virtual collocation services upon request. The PSC approved pricing flexibility in the form of zone density pricing for the new collocation tariffs.