BEECHER - NAWC

Water ComparedStructoral ChangeTable 3-6NARUC Principles to Guide the Restructuring of the ElectricIndustry (1996).,'"·'ReliabilityCustomerChoiceUniversalServicePublic BenefitsStranded CostsConsumerProtectionState DecisionsEnvironmentPUHCAPURPAShared BenefitsPublic ParticipationSafety, reliability, quality, and sustainability of electric service should bemaintained or improved in a restructured electric system.Consumers should have the opportunity to make informed choices amongproviders and services. It is for the States to determine the extent of and pacefor expanding choice for consumers under their regulatory oversight.Universal service at reasonable rates, including adequate protections for lowincomecustomers, should be maintained.The public benefits of energy efficiency, renewable resources technologiesand research and development should be maintained through existing or newmechanisms.Existing commitments of utilities arising from past decision made pursuant tohistorical regulatory and legal principles should be addressed in a fair andreasonable manner by States.Consumers should be protected from anti-competitive behavior, unduediscrimination, poor service, and unfair billing and disconnection policies.States and State commissions should determine retail electric policies,including restructuring policies.Structural changes to the electric industry should maintain or improve thequality of the environment.Changes to PUHCA should be maintained in the context of broader industrychanges. Regulation should be reduced only as competition becomeseffective at preventing monopoly abuses.PURP A should be reformed generally consistent with the following: goals ofPURP A should be affirmed; mandatory purchase requirements not applicablefor utilities in a State that has determined acquisition of generation is subjectto competition.All classes of customers should benefit from improvements due to structuralchanges in the industry.Industry restructuring policies should be developed in public processes withparticipation open to all.Source: National Association of Regulatory Utility Commissioners (July 1996).73 September 1998