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Last Updated: April 2007
10/00: The PSC closed the formal inquiry into restructuring in the State of Alabama. They will continue to monitor activity in other States and at the federal level through less-formal channels. The decision came after the PSC commissioners reviewed the Staff Electric Industry Restructuring Task Force's Report on the Public Interest and Role of Commission. On the matter of Public Interest, the report stated that it has not been demonstrated that all consumers in Alabama would continue to receive adequate, safe, reliable, and efficient energy services at fair and reasonable prices under a restructured retail market at this time. On the matter of Role of the Commission, the report stated that the "Commission can not mandate or otherwise allow retail competition or electric industry restructuring without state enabling legislation." It was also stated that the ultimate role of the Commission both during and after a transition to competition will depend on the form restructuring takes in Alabama.
02/00: Following the recommendations in Interim Report No.1, the PSC scheduled hearings to address two key issues: whether electric power industry restructuring for competition is in the best interests of the consumers in Alabama and the regulatory authority of the PSC in a market-based system.
11/99: The Staff Electric Industry Restructuring Task Force Interim Report No. I was received by the PSC in September 1999. Comments from interested parties were received and reviewed. The PSC issued recommendations for hearings in early 2000 to address two key issues: whether restructuring was in Alabama's public interest and the regulatory/jurisdictional role of the PSC. The report defined "being in the public interest" as resulting in greater economic efficiency for all consumers. The task force believes some statutory change and policy guidance from the State Legislature would be necessary to implement a move to an efficient open market form of controlled retail competition from the then existing cost-based monopoly (in February 2000, the PSC set the inquiry for April 2000).
09/99: Final comments were filed in response to the PSC June 1998 Order soliciting comments on electric utility industry restructuring. As a result, Interim Report No. 1 was issued by the Task Force in September 1999.
04/99: A study released by the University of Alabama, Auburn University, sponsored by the State's cooperative utilities, estimated that rates in Alabama could rise 6 percent under retail competition. The study recommended a slow approach to restructuring and further study.
06/98: The PSC began a formal investigation into restructuring the electric power industry, as ordered in April 1998 docket, by issuing a Scheduling Order posing a number of questions dealing with the issues of restructuring for competition. Comments from interested parties were received and analyzed, and a report was prepared.
04/98: PSC issued an order to establish the instant docket, PSC Docket 26427. A series of workshops were scheduled in 1999 on market power, stranded costs, service reliability and other issues to aid the PSC in decision making.
12/97: The PSC approved a draft report on restructuring the electric industry, "Report and Policy Development Plan of the Staff Electric Industry Restructuring Task Force," issued in October 1997. The report recommended that a phased study of restructuring be instituted by the PSC to determine the extent the public interest would be affected by restructuring and competition.
01/97: Alabama Electricity Consumers Coalition and American Energy Solutions filed in Federal court a suit challenging the statute on stranded costs as unconstitutional. The suit was dismissed because the law had yet to be invoked..
12/96: The PSC Advisory Staff issued a white paper, "The Electricity Industry and Restructuring." The paper led to the creation of a Staff Electric Industry Task Force to explore the potential results of deregulating the electricity industry in Alabama.
05/96: Senate Bill 306, "The Electricity Customer Severance Law," was enacted. The law provided utilities with the opportunity to collect from customers who leave their system the amount of stranded costs associated with the customers' service.