１９９８年末に、ＩＳＯ Ｎｅｗ Ｅｎｇｌａｎｄを設立。
a four-year legislative battle, Gov. John Rowland (R) signed Connecticut's
deregulation legislation into law on April 29, 1998. The legislation will
give 35 percent of the customers in the most populated areas direct access
on Jan. 1, 2000. The remaining customers will be allowed to choose six
months later. The bill promises a rate cut of 10 percent off 1996 levels
and allows utilities to recover their stranded costs.tting
Once direct access begins, Connecticut's investor-owned utilities (IOUs)
will remain regulated because they will continue to handle the regulated
businesses of transmission and distribution. They will maintain and repair
the network of power lines. Utilities also will read and maintain meters
and bill customers.
The state’s biggest IOUs, Connecticut Light & Power (CL&P) and
United Illuminating Co. (UI) will no longer be in the business of generating
power. They will be required to sell their generating plants at a closed-bid
auction. The utilities will have to auction off their hydroelectric dams
and oil, coal and natural gas-fired power plants by Jan. 1, 2000, and their
nuclear power plants by Jan. 1, 2004. Connecticut is the only state requiring
nuclear plants to be sold when retail choice is implemented. The law allows
unregulated affiliates of the utilities to bid for any or all of the power
plants.Recovering Stranded Costs
Recovering Stranded Costs
In exchange for selling all of their nuclear and non-nuclear
power plants, utilities will be able to collect stranded costs during the
transition to an open market through a "competitive transition assessment"
in customers’ electricity bills. Stranded costs for CL&P are estimated
to be $3 billion. UI’s stranded costs are estimated to be $900 million.
Power plant sales and other measures are expected to reduce those costs
regulators decide how much can be
passed onto customers. Securitization
has been approved as a means of recovering
stranded costs, however, utilities will only be allowed to use securitization
for non-nuclear generating facilities.RTT
Retail Choice Chronology
The following is a timetable for implementation of retail choice in Connecticut:
Oct. 1, 1998: Utilities must submit plans to state regulators to separate
power production operations from their transmission and distribution businesses.
End of 1998: Creation of ISO New England.
Oct. 1, 1999: Deadline for utilities to separate their power production
from transmission and distribution business.
Jan. 1, 2000:
35 percent of all electric customers in the state’s largest cities can
choose their electricity supplier.
Deadline for utilities to sell off their non-nuclear generating plants.
State regulators can assess a charge of .03 cents per kWh to fund conservation
State regulators can assess a charge of .05 cents per kWh to go to Renewable
Energy Investment Fund to finance power generation from wind, sun and water
Systems benefit charge takes effect.
July 1, 2000: All customers can choose their electricity supplier.
Jan. 1, 2004: Deadline for utilities to auction their nuclear power plants
or legally transfer them to separate affiliates.
The Future for IOUs
According to UI's general manager of marketing and sales, John Conroy,
"We won't be a major generation player. We may invest in plants as
a passive investor, but we don't want to be a generator like NU."
Instead, the company wants to concentrate on the energy services business.
They will work with companies to reduce the amount of electricity they
use, install electrical equipment, including substations and energy efficient
lighting, and help large buyers secure the best price for their electricity
dollar. Northeast Utilities, CL&P's parent company, has not yet announced
how its business will be organized when direct access starts.
|Average Price of
||10.30｢ per kWh
||6.12｢ per kWh|
|Average Price - Residential
||11.77｢ per kWh
||7.72｢ per kWh|
|Average Price - Commercial
||10.13｢ per kWh
||6.68｢ per kWh|
|Average Price - Industrial
||7.75｢ per kWh
||4.00｢ per kWh|
prices are per kilowatt-hour (kWh).|
Cost per kWh is based on total electric utility industry.
Source: EEI's Data for the Statistical Yearbook of the the Electric Utility
Industry - 1996
Copyright (c) 1999 Reliant
All Rights Reserved.
To report problems with
this web site,
e-mail the Reliant
Energy HL&P Webmaster