June 19, 1997
Representative Markey introduces Electricity Competition and Consumer Choice
Act of 1997, to make federal power marketing agencies and non-jurisdictional
transmission owners subject to the requirements of FERC Order 888 and 889.
July 1, 1997
The Utility Restructuring Act of 1996, Rhode Island’s retail choice law,
is implemented. Approved by the Rhode Island House of Representatives on
June 11, 1996 and by the State Senate less than one month later, the Utility
Restructuring Act is the nation’s first comprehensive legislation enacted
on electric utility industry restructuring.
Government, new commercial and industrial accounts with loads exceeding
200 kilowatts (kW) and existing manufacturers with annual average demand
exceeding 1.5 megawatts (MW) are the first to be phased into direct access.
July 1997
FERC has approved 340 power marketing entities to date, with 10 accounting
for three-quarters of the electricity delivered by power marketers in 1996.
October 1997
The Illinois Senate passes House Bill 362, which calls for the restructuring
of the state’s electric utility industry during the summer of 1998. HB
362 calls for a 15 percent reduction in utility rates for residential customers
beginning August 1998, but does not allow customers to choose their electricity
supplier until 2000.
October 8, 1997
Senator Jeff Bingaman (D-New Mexico) introduces Senate Bill 1276, which
clarifies states’ authority to implement retail competition and prohibits
their barring recovery of Public Utility Regulatory Policies Act (PURPA)
contract cost. The bill expands FERC’s authority over all transmission
to establish and enforce national reliability standards and transmission
siting. The bill also permits FERC to establish regional transmission systems
and independent system operators (ISOs).
October 15, 1997
Electric utility industry restructuring in Vermont hits a major roadblock
when a special committee of the Vermont House of Representatives opposes
developing retail choice legislation. The 12-member committee, which had
been hearing testimony on restructuring since August 1997, instead unanimously
instructs its staff to concentrate on a bill to introduce performance-based
rate making to lower power costs in the state.
November 1, 1997
The Pennsylvania customer choice pilot program begins. Twenty-six electricity
suppliers are approved by the Pennsylvania Public Utility Commission to
participate in the statewide program. More than 278,000 residential, commercial
and industrial customers (5 percent from each customer class) from the
state’s eight investor-owned utilities are eligible, making it the country’s
largest pilot program.
November 7, 1997
Senator Dale Bumpers (D-Arkansas) and Slade Gorton (R-Washington) introduce
Senate Bill 1401. The bill mandates full retail competition by Jan. 1,
2002, and provides for full stranded cost recovery.
November 25, 1997
Massachusetts acting Governor Paul Cellucci signs House Bill 5117. The
bill calls for direct access to begin in Massachusetts on March 1, 1998
and includes a 10 percent rate cut for customers. It also guarantees the
recovery of all past investments in utilities’ generating facilities.
FERC approves a major East Coast electric power pool’s restructuring plan
establishing an ISO and providing open access transmission service on a
pool-wide basis under "non-pancaked" rates. It marks the third
ISO approved by FERC.
FERC leaves intact key elements of its Open Access Rule – Order
No. 888 – and reaffirms is commitment to open access and stranded
cost rules.
December 1, 1997
The California Public Utility Commission launches an $89.3 million public
education program to help Californians understand deregulation and how
restructuring will affect the state’s electric utility industry.
December 22, 1997
The California Power Exchange (PX) and California ISO announce a delay
in the start of direct access in California, which was scheduled to begin
Jan. 1, 1998. According to PX and ISO officials, tests of computer and
communications systems disclosed that the systems were unable to properly
track the transactions of electricity customers and suppliers in a competitive
marketplace.
December 29, 1997
PX and ISO officials announce direct access will begin in California March
31, 1998.
December 31, 1997
Maryland’s Public Service Commission votes to delay opening the state’s
retail electricity market to competition by 15 months. The commission had
issued an order allowing customers to begin choosing their electricity
supplier on April 1, 1999.
January 5, 1998
FERC announces a Feb. 20 public roundtable to consider procedures it might
use to ensure reliability rules do not impede open and non-discriminatory
access to transmission.
January 8, 1998
The Vermont Electric Cooperative says it will propose a plan to begin retail
choice in its territory by late 1998 without waiting for Vermont lawmakers
to act on a restructuring bill. The cooperative believes it can begin choice
without new legislation since it will not compete in other utility service
areas and has no stranded costs to recover.
January 23, 1998
Senate Majority Leader Trent Lott (R-Mississippi) predicts that Congress
probably will not act significantly on electric utility industry restructuring
until 1999. He expects to bring up a bill to repeal PUHCA before the April
recess.
February 3, 1998
Members of the Alliance to Protect Electricity Consumers urge members of
the U.S. Senate to vote against Senator D’Amato’s proposed legislation
to effectively repeal PUHCA.
March 1998
House Commerce Committee Chairman Thomas J. Bliley (R-Virginia) pushes
for the creation of a Congressional Electricity Caucus to "spearhead
efforts to reach consensus on comprehensive legislation to give all consumers
a choice of electricity suppliers."
Six governors from states with heavy municipal utility presence form the
Governors' Public Power Alliance and call for removal of federal barriers
to public power's participation in a restructured industry.
FERC ISO Roundtable is scheduled for April 15 and 16 to examine whether
any changes to its policies that affect the development of the ISOs are
appropriate in order to promote competition and reliability in bulk power
markets.
The Maryland State Senate passes a deregulation bill that will enable customers
to select their electricity supplier by July 3, 2002. Legislation
that provides assistance for low-income families and addresses tax issued
raised by restructuring must be developed before direct access can be implemented.
The Virginia State Senate approves legislation to deregulate the state's
electric power industry. Sponsored by Democratic Senator Jackson
Reasor Jr., the bill calls for direct access to begin by January 1, 2004.
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