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Distribution Companies: For Most, What Else Is There?

Explore the challenges and potential solutions for the electric distribution industry. Learn about consumer principles, the role of regulators, and the need for comprehensive system planning.

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Distribution Companies: For Most, What Else Is There?

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  1. Distribution Companies: For Most, What Else Is There? Rob Sargent National Association of State PIRGs

  2. Consumer Principles for the Electric System • Preserve universal access to safe, reliable, affordable electricity. • Public interest must guide all regulatory decisions. • Market mechanisms should only be employed when they benefit the public interest and must be backstopped by regulation. • Increasing conservation, efficiency and renewable energy are vital to a healthy electric system and consistent with the public interest. • Decisions with regard to the electric system should be made at the level of government most accessible and responsive to the public. Rob Sargent, State PIRGs MA Restructuring Roundtable

  3. Where Are We Now? • System in Limbo: Caught between two worlds. • Electric industry restructuring has led to few benefits for the majority of consumers and most of those are transitory • Average consumption has risen while support for efficiency programs has declined since the early 90’s. • “Avoided” rate cases have caused deferred investments and will cost consumers and reliability. Rob Sargent, State PIRGs MA Restructuring Roundtable

  4. Regulators? • Many have forgotten role. • Regulate consistent with the public interest and just and reasonable rates. • “Markets” does not equal “least cost” • Look at the bigger picture (not just the supply and transmission side) and plan. Rob Sargent, State PIRGs MA Restructuring Roundtable

  5. Where Do We Go From Here? • Accept that retail competition is an experiment that hasn’t worked. • Recognize that least cost full system planning; which prioritizes conservation, efficiency and clean renewable energy is in the best interest of everyone (but the generators). • Demand that the Feds take their job seriously (reliability, just and reasonable rates, market power) Rob Sargent, State PIRGs MA Restructuring Roundtable

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