The Body Electric
Shedding light on utility deregulation.
No matter how you look at it, electric utility deregulation will
not be simple. With California adopting a competitive system
beginning in January 1998, at least two major congressional bills
pending, and 49 states addressing the issue in some form (including
Massachusetts, New Hampshire, Pennsylvania and Rhode Island, which
have passed laws), small-business owners may soon face a decision
about choosing an electricity provider that could profoundly impact
their bottom lines.
But to make sure the decision doesn't put them between a
rock and a hard place, entrepreneurs must make their views heard.
"Major corporations have the wherewithal to attend hearings.
Residential users have clout because they're a big voter
block," explains Julie Scofield of the six-state Smaller
Business Association of New England. If entrepreneurs don't
offer input, Scofield worries, their concerns will be ignored.
According to Betty Jo Toccoli of the California Small Business
Association (CSBA), small-business concerns include service
reliability (will my lights go on when I hit the switch?),
accountability (who will I call for repairs?) and price. The CSBA
weighed in on these issues when it helped California lawmakers
craft legislation small business can live with. Assembly Bill 1890
gives an immediate 10 percent rate reduction to all residential and
small commercial customers of the state's three largest
investor-owned utilities. By 2002, there should be a 20 percent
rate reduction.
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More entrepreneurs need to follow the CSBA's lead. While
utility restructuring is in its infancy, the movement is gathering
steam and will soon become a pressing small-business issue.
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