In an effort to speed deregulation of the electricity industry, the US government is proposing changes that will bring nationwide competition by 2003, Dow Jones reports.
At least 16 states have taken steps to implement deregulation but this is proceeding in varying degrees and at varying speeds. The federal government wants to encourage greater haste. It also wants to tackle cross border issues which states cannot handle independently.
Under the government proposals, utilities would be required to provide consumers with details of the services they offer and would use a standard method to explain rates, terms and the environmental impact of the power they were selling.
The Federal Energy Regulatory Commission would be given the authority to establish an independent body to regulate the use of transmission lines. Utilities would be permitted to recover ‘stranded costs’ as a result of deregulation. States would be allowed to opt out of deregulation if they believed it would ill-serve their consumers.
One feature missing from the plan was a proposal, being promoted by environmental groups and the Environmental Protection Agency, that would have required utility companies to limit the amount of carbon dioxide their power plants emitted.