Challenges in Designing Default Retail Electric Service
A key question in any state’s electricity restructuring plan is whether some form of retail power service should continue to be offered on a regulated basis under certain circumstances to some customers. This question is both a short-term (transitional) and a long-term (post-transitional) issue. So far, in every state adopting retail competition, utility distribution companies (UDCs) have been required to offer retail service on a regulated basis at least during a transition period. Generally, these arrangements have been part and parcel of complex comprehensive political settlements involving many issues including UDC recovery of stranded costs. But the post-transition responsibilities of UDCs to provide regulated retail service have usually been deferred as issues “to be determined” in later regulatory proceedings.
KeywordsIncome Marketing Assure Volatility Vanilla
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