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NATIONAL ASSOCIATION OF STATE UTILITY CONSUMER ADVOCATES
RESOLUTION
Urging Jurisdictions Introducing the Competitive Provision of Electricity
or Natural Gas Service to Assure the Continued Availability of Reliable
Service to Customers from a Default Service Provider at Just and
Reasonable Rates.
Whereas, residential consumers in some states and the District
of Columbia may be participating in competitive markets for all
or a portion of the electric or natural gas service previously supplied
to all consumers by a single utility; and
Whereas, the introduction of competitive markets for the provision
of electric or natural gas service to residential customers does
not alter the essential nature and necessity of the service; and
Whereas, with the introduction of competitive electric or natural
gas service, most jurisdictions have recognized the likelihood that
the migration of all customers to a competitive supplier is not
likely to occur, if at all, in the short term; and
Whereas, the introduction of competition does not diminish the
essential role which continued electric or natural gas service plays
for residential households or the unacceptability of any customer
having fewer opportunities to obtain service or greater hardship
than would have existed before the introduction of competition;
and
Whereas, a service provider (variously termed Standard Offer Service
Provider, Default Service Provider, Supplier of Last Resort or Provider
of Last Resort) is required to preserve service for customers that
do not migrate to competitive service or lose their competitive
service; and
Whereas, residential customers participating in these competitive
markets should have access to a regulated service that is comparable
or equivalent to the service previously available;
THEREFORE BE IT RESOLVED, that NASUCA urges each jurisdiction which
introduces competitive markets for the provision of elements of
electric or natural gas service to design such markets so that:
At least one provider ("the Default Service Provider")
is required by law to offer continued electric or natural gas service
under terms and conditions that are comparable to those that existed
prior to the onset of retail competition;
The service provided by such Default Service Provider is a regulated
service provided pursuant to the regulatory jurisdiction of the
state and under just and reasonable rates approved by the regulatory
authority and in compliance with standards of service and performance
that are defined by the regulatory authority.
The Default Service Provider is equipped and able to assure that
the rates, terms and conditions, reliability and quality of customer
service offered to such customer are no worse with such service
than they would be with traditional utility service;
The rates charged by such Default Service Provider are stable and
predictable over the long term and that the rates or formulas to
determine such rates are approved only after appropriate notice
to the public, consumers, and adequate administrative review;
The Default Service Provider shall not simply pass through wholesale
spot market rates for the energy or gas commodity portion of Default
Service, and shall be required to take prudent measures to provide
least cost service and assure long term rate stability, through
various means including but not limited to competitive bid, bilateral
contract, or provider-owned generation or supplies;
All customers (including those whose supplier has defaulted or
who are unable to obtain service from competitive suppliers) have
access to Default Service without additional fees, charges, entry
barriers, or higher prices compared to those customers who do not
shop or seek to enter the competitive market.
The rates for Default Service are not increased solely for the
purpose of stimulating the development of competition;
If the Default Service Provider is not the distribution company,
it must have the obligation under state law to maintain the safe,
adequate and continued provision of each element of service it provides,
equivalent to the obligation of the distribution company to provide
its services;
The service provided by the Default Service Provider be identified
on the customer’s bill and in consumer education and information
materials in a manner that allows the customer to compare such service
with offers in the competitive market;
All customers in the jurisdiction are periodically advised of the
availability of service from such Default Service Provider as well
as alternative providers and of the terms on which such services
are offered;
Any public information campaign to advise customers of the availability
of competitive service shall also advise customers of the availability
of service from such Default Service Provider and of the identity
and contact information for information about the rates, terms and
conditions of default service.
BE IT FURTHER RESOLVED, that NASUCA authorizes its Executive Committee
to develop specific positions and to take appropriate actions consistent
with the terms of this resolution. The Executive Committee shall
advise the membership of any proposed action prior to taking action
if possible. In any event the Executive Committee shall notify the
membership of any action taken pursuant to this resolution.
Approved by NASUCA: Submitted by:
June 19, 2002 Electricity Committee
Gerald A. Norlander, Chair
Gas Committee
Byron Harris, Chair
National Association of State Utility Consumer Advocates
8380 Colesville Road, Suite 101, Silver Spring, MD 20910
Phone: (301) 589-6313 Fax: 589-6380
e-mail: nasuca@nasuca.org |