Customer Choice in Louisiana
On
December 4, 2001, the Louisiana
Public Service Commission
(LPSC) ruled that retail
open access is not presently
in the public interest. However,
vocal sentiment from a number
of large industrial customers
prompted Staff to recommend
that large users be given
the option to leave regulated
rates and be served in the
competitive environment.
Industrial customers not
choosing retail access would
remain on regulated rates.
On January 22, 2001, the Louisiana Commission Staff submitted to the Commission a series of nine reports on issues associated with the potential for retail open access in the electric utility industry in Louisiana. These reports were prepared in response to the Commission's directive to perform a comprehensive analysis concerning the merits of transitioning to retail competition, the structure of the future retail market and the mechanisms necessary to accomplish any needed changes.
Staff proposed two possible access dates for large customers. January 1, 2003 is the date in the Staff's original plan. Alternatively, in the event utilities cannot have all necessary mechanisms in place for a smooth transition to competition to achieve a 1/1/2003 access date, access could start on 10/1/2003. A minimum threshold level for customers eligible for retail access was established for customers with an average load of 2 - 5 Mw or greater.
On April 30, 2002, the LPSC held a collaborative discussion with utilities to address specific restructuring issues. These issues include the 1. definition of a large industrial customer, 2. establishment of affiliate rules, 3. exploration of methods to encourage construction of new regulated and unregulated capacity, 4. a method of monitoring the progress of retail open access in adjacent jurisdictions, and 5. an estimate of transitional costs to retail open access.
While the current finding is that retail access is not beneficial to all customer classes in Louisiana, the LPSC has the authority to implement retail competition should conditions change.
