Four stakeholder committees set up last March by the New YorkPublic Service Commission (PSC) have identified the key roadblocksin the state’s stalled retail energy deregulation process. By nextspring, they expect to have some solutions – if it isn’t too late.

That the electric market wasn’t functioning very well wasevident in the summer’s power price spikes, emergency price capsand customer complaints. This winter may give the committees a lotmore real-time input about how well the deregulated natural gasmarket and power markets function during a peak heating season.

The committees submitted their first conclusions late last monthand are expected to make final recommendations to the commission bynext spring.

One major problem the committee on Public Involvement and Inputdiscovered was that a large number of New Yorkers didn’t even knowthey had a choice of suppliers. Market surveys in 1999 showed that61% – about the same percentage as in 1998 – were aware they had achoice of power suppliers, but only 24% knew about retailcompetition for gas.

Of those who did know about and participate in natural gaschoice programs, a survey showed 54% and 71% of residential andcommercial customers respectively were “satisfied” with their gasmarketer. The study also pointed out that satisfaction varied amongutility service territories. Only 36% of residential and 53% ofcommercial customers in the Con Edison service territory weresatisfied, whereas the National Fuel territory reportedsatisfaction levels of 76% for residential and 83% for commercialcustomers.

Other stakeholder committees turning in first drafts last werethe Public Benefits Committee, Future Role of Regulated UtilitiesCommittee, and the Retail Development Committee. The groups includerepresentatives of utilities, energy service companies, stateagencies, consumer advocate groups, environmental groups and otherinterested parties.

“There is a psychological process that groups go through as theywork together toward a common goal,” said ALJ Jeffrey E. Stockholm.”What all the judges have tried to do is to give them a common goaland the first piece of it was generating these reports, now thesecond part is the analysis which is going to be more difficult. Inmy opinion the groups have come together and the committees areworking extremely well.”

“Phase two is going to be a much more compressed time periodthan phase one, so I am not sure exactly what level we are going tobe able to address a lot of these things,” said Public BenefitProgram co-Chair and Niagara Mohawk representative Jack Ziegler.”But I am sure there is a meeting of the Executive Committee onFriday and we will get some direction from the judges at thattime.”

“I think it [choice] certainly can work, ‘can’ has never been adoubt, but whether it will is another thing entirely,” said acommittee member. “There are all kinds of variables. Some peoplesay that ISO caps are making warning signs towards generators, Idon’t think so, the ISO caps that have been proposed are highenough that I don’t think they should scare off many generators. Icertainly think a form of competition can and will exist in NewYork. “In the birthing process, there is always a little bit ofpain, the question is whether you can ride out the pain.”

Alex Steis

©Copyright 2000 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.