WTNH News Channel 8 / News / 1999

	Competition off to slow start as public educated about deregulation HARTFORD, Conn. (AP) _ No electric companies have registered to compete for customers under Connecticut's electric deregulation law, even though they can start signing up customers July 1. The state agency that licenses electric competitors said it's not worried about the absence of competitors for Connecticut's 1.3 million electric customers. Some companies are waiting for regulatory issues to be resolved, said Beryl Lyons, spokeswoman for the Department of Public Utility Control. "We've heard or we know of companies interested in applying," Lyons said. But the Office of the Consumer Counsel, a state watchdog agency, said the slow pace may mean that companies are not yet interested in Connecticut. "We're concerned a perception's been created that this isn't a place where competition is happening," said Eugene Koss, assistant consumer counsel. Deregulation also got off to a slow start in Massachusetts and Rhode Island. Competitors around the country are looking to make money in Connecticut and other states, but they are waiting to see what the ground rules are, said Chuck Coyne, a manager at Northeast Energy Systems Inc. of Framingham, Mass. Coyne said energy companies are especially interested in how utility regulators treat existing utilities and whether the rules are set up to allow for good competition. "There's a lot of inside baseball going on," he said. In the meantime, utility regulators and Connecticut Light & Power and United Illuminating Co. are working to educate people about the new system. Starting in the year 2000, people will be able to choose their electric companies the way they now choose their long-distance telephone companies. "Electric restructuring is all about choice, and sometimes it's very difficult to make choices in an industry that has always been a monopoly," said Fran Mayko, a spokeswoman for UI. "Now people have to think seriously about who their power supplier's going to be." Under the law passed last year, utilities are required to give competitors a list of their customers, unless the customers request their names not be released. The utilities this month sent out with their bills a notice that allows customers to take themselves off the list. CL&P's deadline is June 15; UI's is June 28. Electric companies can still get names and addresses through street directories, telephone books and other sources. Most consumers will see the first big change from deregulation in July, when CL&P and UI send out new kinds of electric bills. The bills are designed to help consumers understand the transition from the old, regulated system to a new, free-market system that begins in the year 2000. The law promises savings of at least 10 percent off the rates established in 1996. Because utilities have cut rates since 1996, the net effect is a rate cut of about 5 percent for about 314,000 UI customers in the New Haven and Bridgeport area and about 6 percent for about 1 million CL&P customers. The mandated rate cut will be in effect until the end of 2002. After that, electric rates will be decided by the free market. New electric bills will list separately the cost for the actual electricity, the cost to get it to people's homes and the cost for other expenses such as conservation and education programs and nuclear decommissioning. Another item on the bill will show the cost for paying off old debts that were racked up under the regulated system. The DPUC is trying to decide how much each of these costs will be. A draft decision on the amount of old debts, called "stranded costs," is due in mid-June, with a final decision planned for the end of June. The stranded cost issue will have a major effect on rates under deregulation. CL&P is to recover up to $4.3 billion in debts related to nuclear plants, fossil fuel plants, power contracts and other costs. UI seeks about $900 million. The utilities are required to sell off their power plants if they want to collect stranded costs. UI in April sold its plants to Wisvest Corp. of Wisconsin. CL&P must sell its fossil fuel plants by the end of the year and must try to sell its nuclear plants by 2004. The Office of Consumer Counsel and other advocates are fighting to keep stranded costs to a minimum. "The lower the stranded costs are, the lower bills are going to be and the more competitors will want to come in, to the benefit of all consumers," said Consumer Counsel Guy Mazza. Today's News Page. WTNH Home Page. ©1999 WTNH/WTNH-DT A LIN station.

Competition off to slow start as public educated about deregulation
HARTFORD, Conn. (AP) _ No electric companies have registered to compete for customers under Connecticut's electric deregulation law, even though they can start signing up customers July 1.

The state agency that licenses electric competitors said it's not worried about the absence of competitors for Connecticut's 1.3 million electric customers.

Some companies are waiting for regulatory issues to be resolved, said Beryl Lyons, spokeswoman for the Department of Public Utility Control.

"We've heard or we know of companies interested in applying," Lyons said.

But the Office of the Consumer Counsel, a state watchdog agency, said the slow pace may mean that companies are not yet interested in Connecticut.

"We're concerned a perception's been created that this isn't a place where competition is happening," said Eugene Koss, assistant consumer counsel.

Deregulation also got off to a slow start in Massachusetts and Rhode Island. Competitors around the country are looking to make money in Connecticut and other states, but they are waiting to see what the ground rules are, said Chuck Coyne, a manager at Northeast Energy Systems Inc. of Framingham, Mass.

Coyne said energy companies are especially interested in how utility regulators treat existing utilities and whether the rules are set up to allow for good competition.

"There's a lot of inside baseball going on," he said.

In the meantime, utility regulators and Connecticut Light & Power and United Illuminating Co. are working to educate people about the new system. Starting in the year 2000, people will be able to choose their electric companies the way they now choose their long-distance telephone companies.

"Electric restructuring is all about choice, and sometimes it's very difficult to make choices in an industry that has always been a monopoly," said Fran Mayko, a spokeswoman for UI. "Now people have to think seriously about who their power supplier's going to be."

Under the law passed last year, utilities are required to give competitors a list of their customers, unless the customers request their names not be released.

The utilities this month sent out with their bills a notice that allows customers to take themselves off the list. CL&P's deadline is June 15; UI's is June 28.

Electric companies can still get names and addresses through street directories, telephone books and other sources.

Most consumers will see the first big change from deregulation in July, when CL&P and UI send out new kinds of electric bills.

The bills are designed to help consumers understand the transition from the old, regulated system to a new, free-market system that begins in the year 2000.

The law promises savings of at least 10 percent off the rates established in 1996. Because utilities have cut rates since 1996, the net effect is a rate cut of about 5 percent for about 314,000 UI customers in the New Haven and Bridgeport area and about 6 percent for about 1 million CL&P customers.

The mandated rate cut will be in effect until the end of 2002. After that, electric rates will be decided by the free market.

New electric bills will list separately the cost for the actual electricity, the cost to get it to people's homes and the cost for other expenses such as conservation and education programs and nuclear decommissioning.

Another item on the bill will show the cost for paying off old debts that were racked up under the regulated system. The DPUC is trying to decide how much each of these costs will be.

A draft decision on the amount of old debts, called "stranded costs," is due in mid-June, with a final decision planned for the end of June.

The stranded cost issue will have a major effect on rates under deregulation. CL&P is to recover up to $4.3 billion in debts related to nuclear plants, fossil fuel plants, power contracts and other costs. UI seeks about $900 million.

The utilities are required to sell off their power plants if they want to collect stranded costs. UI in April sold its plants to Wisvest Corp. of Wisconsin. CL&P must sell its fossil fuel plants by the end of the year and must try to sell its nuclear plants by 2004.

The Office of Consumer Counsel and other advocates are fighting to keep stranded costs to a minimum.

"The lower the stranded costs are, the lower bills are going to be and the more competitors will want to come in, to the benefit of all consumers," said Consumer Counsel Guy Mazza.

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