Could court's pro-Bell decision
have serious energy impacts?

NEMA President Craig Goodman suspects it could.
Here's how.
     He envisions the impact on "local distribution networks and prices that can be charged for access could affect the direction of competitive energy markets."
     He's looking at default electricity rate designs coupled with the FCC's pending broadband over power line (BPL) rulemaking when utilities are about to roll out BPL services.
     And this is what he sees:
     "Extremely anti-competitive default rate designs that can prevent power competition now [the District of Columbia Appeals] court has overturned access and competitive prices for local network access."
     He's uneasy that the FCC is about to open markets for utilities to enter high-tech BPL and voice over internet protocol (VOIP) when Congress, the courts, federal agencies or state PUCs aren't guaranteeing competitively neutral, non-discriminatory open access to power lines for either electricity or technology competition.
NEMA sees BPL as the use of power lines "to transmit and deliver the bundled sales of electrical energy commingled with energy (telephony, information, content, media, data and technology on a spectral frequency)."
     Goodman believes a case can be made that mandatory, open, non-discriminatory access to power lines "at just and reasonable rates is absolutely necessary to ensure fair, competitively neutral competition in electricity and related powerline technologies."
     He cited the way the Pole Attachment Act guaranteed open access to utility poles for wireless and broadband providers.
     The goal was to avoid unneeded duplication of utility infrastructure, he said.
     Goodman favors encouraging technology and infrastructure investments and the best way, he added, is to encourage competition. "It may be critically important to our national security as well," he added.
     He is concerned that federal law doesn't give FCC authority to mandate open access to powerlines.
     The Appeals Court decision could leave FERC as the only agency with the power and Supreme Court approved authority to mandate open access to power lines to transmit energy in interstate commerce.
     FERC has found discrimination in the use of the grid to transmit energy in commerce, Goodman noted.
     What's going on with Cinergy (RT, 3/3)?
     "I have admired Jim Rogers for many years for his outspoken support of competition and his recent announcement of a major BPL rollout could prove to be a excellent growth strategy.
     However, without open access in this FCC NOPR and now with this Court decision, Cinergy's proposed default rate design could make it very difficult to compete in its service territory in electricity as well as value added services and technologies," Goodman added. 

(Story originally published in Restructuring Today 3/4/04)