The%20Obligation%20to%20Serve%20in%20a%20Restructured%20Electric%20Industry%20in%20New%20York

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The Obligation to Serve in a Restructured
Electric Industry in New York

• Presented to
• New York Low-Income Forum on Energy (LIFE)
• Roger Colton
• Fisher, Sheehan Colton
• November 2000

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Statement of Principle No. 1

• This state is committed to attaining and
  maintaining universal service within the electric
  industry.

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Statement of Principle No. 2

• A distribution utility, as well as any energy
  service provider, shall have the obligation to
  prevent any deterioration in current levels of
  universal service.

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Definition

• "Universal service" means that all persons
  desiring to take electric service, and paying or
  agreeing to pay for such service, shall have the
  opportunity to take such service at reasonable
  rates and under reasonable terms.

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Obligation to serve Component 1

• A distribution utility shall have the "obligation
  to connect."

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Obligation to serve Component 2

• An energy service provider shall have the
  obligation to participate in providing service to
  residual classes.

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Obligation to serve Component 3

• A distribution utility shall have the obligation
  to provide billing and collection service.
• An energy service provider shall have the
  obligation to agree to such provision.

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Obligation to serve Component 4

• An energy service provider shall have the
  obligation to make available at least a minimum
  standard service offering.

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Obligation to serve Component 5

• An energy service provider shall have the
  obligation to make available service on a
  non-discriminatory basis.

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Obligation to serve Component 6

• A distribution utility shall have the obligation
  to serve as the "provider of last resort."

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Obligation to serve Component 7

• All energy service providers shall have the
  obligation to fund the excess cost of the
  provider of last resort via a charge on all end
  use.

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Obligation to serve Component 8

• A distribution utility, as well as any energy
  service provider, shall have the obligation to
  promote the aggregation of residual classes for
  purposes of negotiating in the private market.

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For more information

• roger_at_fsconline.com

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Slide show based on

• Roger Colton (1999). The Obligation to Serve in a
  Competitive Electric Industry, Oak Ridge National
  Laboratory Oak Ridge (TN)