Electricity Deregulation

Q.	If a storm damages the lines, who will be responsible for getting my power restored?
A.	Your present utility will continue to provide delivery of electricity through its transmission and distribution lines. Those services will continue to be regulated. The transmission and distribution utility will be responsible for repairing its lines and restoring service.

Q.	Will I have to worry about bornouts under deregulation?
A.	According to the IOUs themselves, brownouts are not more likely to occur as a result of deregulation.

Q.	What are these "stranded costs" I have been hearing about in this debate?
A.	Generally, "stranded costs" are those costs electric utilities are currently permitted to recover through rates approved by their public service commissions, but may not be recovered in a competitive market.

Q.	If I live a rural area, will I be less desirable to serve and therefore more liekly to pay higher rates for electricity?
A.	It does not cost any more to produce electricity because of one's location. The increased costs of providing electricity are in the delivery of the electricity over the power lines, which will continue to be regulated and not subject to competition.

Q.	I an presently served by an electric cooperative. Will I be able to select a different supplier in the future?
A.	It depends on whether our General Assembly includes electric cooperatives in their restructuring legislation. Legislation proposed in the House of Representatives exempts electric cooperatives and publicly owned utilities. Legislation proposed in the Senate includes all electric utilities.

Q.	How will I be able to compare prices and services?
A.	Proposed legislation requires the PSC to promulgate regulations which require all electricity suppliers, marketers, brokers, distribution companies and aggregators to provide adequate information to enable customers to make informed choices. It may be desirable for the PSC to publish a comparison guide showing the rates and services provided by each seller or reseller.

Q.	Can I be switched to another supplier without my knowledge or consent?
A.	Proposed legislation requires the PSC to promulgate regulations to prevent this.

Q.	What happens if I do not select a new supplier?
A.	Under proposed legislation, the failure to select a supplier constitutes a request by that person to the PSC to select a provider under a PSC-approved default plan.

Q.	When will I be able to select a new supplier?
A.	Legislation was introduced in the South Carolina General Assembly this year. Debate will likely continue through 1998. Deregulation will take time to implement. The earliest time we may be able to select a new supplier will probably be the year 2000

Q.	What is the Consumer Advocate's position on electric competition?
A.	The Consumer Advocate supports competition provided everyone benefits from it, residential and small business consumers as well as industrial consumers. The Consumer Advocate believes a successful transition to a competitive market requires an involved and educated public.

SOUTH CAROLINA DEPARTMENT OF CONSUMER AFFAIRS

SOUTH CAROLINA DEPARTMENT OF
CONSUMER AFFAIRS