New York widening retail competition
to set major example

The New York PSC in August dramatically approved its long-expected new energy policy creating a transitional energy market (RT Bulletin, 8/25).
     The PSC expects the policy to:
     • Open all utility retail functions to competition except the delivery of electricity and natural gas over local utility systems;
     • Expand consumer outreach and education programs to keep consumers informed about opportunities in energy markets;
     • Boost the number of large customers getting real-time -- or spot-energy market prices to foster greater use of new pricing alternatives offered by non-utility marketers such as fixed-price, real-time, peak and off-peak, hedged and other pricing options;
     • Develop a well-defined and robustly competitive retail energy environment whereby regulated utilities need only offer delivery services and not the power and gas commodity;
     • Continue to develop programs designed on a utility-specific basis that help consumers migrate to competitive ESCOs -- eschewing a "one-size fits all" approach to fostering migration;
     • Continue to give marketers the option of having utilities handle billing, accounting and other retail services for their customers;
     • Let groups of customers with a common interest negotiate power and gas contracts by fostering aggregation programs, and
     • Develop statewide initiatives based on "best practices" that benefit customers.
     That last point refers to Orange & Rockland's residential PowerSwitch program that the PSC called "one of the most successful retail competitive programs in the country with about 30% of the company's mass-market electric and gas customers switching to non-utility providers."
     The commission reminded that its policy is based on a record developed with 35 stakeholders such as consumers, state agencies, municipal governments, energy companies, trade unions, utilities and others.
     Figure in a comprehensive report compiled by the parties plus feedback from the public at roundtables, forums, focus groups with residential and business customers, public comments and surveys of low-income advocates and municipal officials.
     The policy statements and order (Commission Case 00-M-0504) are to be available at www.dps.state.ny.us under commission documents.
     Originally published in Restructuring Today on August 26, 2004.