The Study Commission on the Future of Electric Service in North Carolina is examining how electric utility service currently is provided and whether changes should be made to the current industry structure. Under the terms of the legislation creating the Commission, it is required to (1) examine the cost, adequacy, availability, and pricing of electric rates and service in North Carolina, and (2) determine whether legislation is necessary to assure an adequate and reliable source of electricity and economical, fair, and equitable rates for all consumers of electricity in North Carolina.

The initial question to be answered by the Study Commission is whether the regulatory environment of North Carolina's electric utility industry needs to be restructured at this time. In the course of its study and in making its recommendations, the Study Commission is required to fully address a number of issues. The Commission issued a notice requesting written comments responding to the 11 questions that were set forth in the notice. The Public Staff of the North Carolina Utilities Commission submits these comments in response to that request.
 

Executive Summary:  View the Executive Summary of the Public Staff's comments before the Study Commission.

Question #1:  Should North Carolina restructure the regulatory environment of its electric utility industry at this time?

Question #2:  Could all residential, commercial and industrial customers choose their own suppliers of generation and our current expectations of universal service, consumer protection and reliability be met?

Question #3:  Could all types of customers benefit from retail competition, including small, rural residential customers? How could this be accomplished?

Question #4:  Could public goals, such as fuel diversity, adequate reserve margins to prevent widespread outages, conservation and energy efficiency, renewable resources, environmental protection, and low income assistance be met through a restructured industry? How?

Question #5:  If restructuring is pursued, what would need to be done to ensure that a competitive market develops, that discriminatory and anti-competitive conduct is prevented, and that only qualified suppliers are able to participate in the market?

Question #6:  If the current North Carolina electric suppliers were unable to recover the costs of their existing plants and, as a result, ended up with stranded investment, how should these costs be recovered and what limitations should be placed on such recoveries?

Question #7:  Are the municipal electric utilities and rural electric cooperatives likely to be impacted differently than the investor-owned, private utilities? What is the best way to deal with any special issues raised by these utilities?

Question #8:  If retail competition were pursued, should it be implemented for all customers at the same time? If a phase-in were required, in what order should customer classes be included?

Question #9:  Should North Carolina wait until the Congress acts before enacting restructuring changes for its electric utilities?

Question #10:  Are there questions that have not or cannot yet be answered before a determination can be made as to whether restructuring is in the public interest? What kinds of studies or experiments might be helpful in providing this information?

Question #11:  If retail competition were found not to be feasible or achievable at this time, what changes could be made to increase customer choices, make the provision of electric service more efficient, or otherwise improve the provision of electric service?

Reference:  Return to the Electric Division Reference Page