Utility "Reregulation": The ESCO Fit

Abstract

No one can think energy, and more particularly energy efficiency,
these day s without wondering what the impact of util ity deregulation
and competition will be on his or her operation. Sudd enl y, owner s must
get smart about bu ying power and making choices. The complexities
inherent in this new era make what was learned through the deregula-
tion of the telephone and natural gas industries look like rehearsals for
the c ommand performance.
Before we look at the ESCO fit in all this, one und er g irding prin-
ciple ne ed s to be kept in mind. The popular nomenclatur e has been "util-
ity dere gulation. " The more appropriate term is reregulation. An yone
wh o has seen the Fed eral Energy Regulatory Commi ssion's Order 888,
will ha ve difficulty believing we are on the eve of der egulation. The term
deregulation will continue to be used, but keep in mind that a bev y of
ord ers, regulations and new federal intrusions are apt to come w ith the
utility restructuring.
We have also been warned by Mr. Ashley Brown, former Ohio util-
ity commissioner, that competition and deregulation are not synony-
m ou s. As Mr. Brown has observed, the airlines hav e been d eregulated
for many years, but in Atlanta today the choice of airlines is Delta ...
Delta ... or Delta . Comp etition at Hartsfield Airport comes close to a
choic e among 747s, 727s or ma ybe an Ll OI I