Chapter IX:
What Needs to Be Done
The era of reliance
on the regulated utility to carry out the public policy in both efficiency
of electricity use and procurement of electricity generated from renewable
sources is coming to an end. Restructuring the electricity industry
will threaten a continued focus on efficient use of electricity as the
deregulated functions seek to sell more electricity. The desire for
an above market generation purchase will be determined by the retail
demand for such generation in a competitive retail market, not by a
resource plan.
The first step in
a public policy to retain an efficiency and renewable resource focus
is to recognize that the current approach will not continue to work.
The regulatory structure to which it was grafted to soon will be gone.
Futile attempts by efficiency and renewable advocates to halt industry
restructuring might be better spent on securing a new means to preserve
public benefits.
Fortunately, the
means to preserve public benefits exists and it is simple. The mean,
a distribution systems charge: matches well with existing delivery systems;
does not require an eager utility; will work in all electricity industry
structures; will work during the transitions; and has been recommended
by states that have faced the choice. A distribution system charge can
preserve public benefits such as efficiency activities and renewable
procurement.
Perhaps the most
important public policy step is to make everyone involved in the restructuring
decisions, especially elected officials, aware that if the public desires
that a focus on efficiency and renewables to continue, it can. Establishing
a distribution charge and the means to allocate the funds to effective
efficiency market transformation activities will work. Moreover, continued
procurement of renewables can be assured through minimum renewable purchase
standards. Equally important is awareness that without such program
mechanisms, a focus on efficiency and renewables will end. A public
policy decision to hand this focus to the markets early in the transition
is an abandonment. The choice is for the public to make, once they have
been made aware of their available choices.