Website Picks
Spring 2003

Consumer Federation of America
http://www.consumerfed.org

For more than three decades, the Consumer Federation of America has advocated policies and programs that help ensure a competitive marketplace, useful and safe products, truthful and informative marketing, and adequate consumer redress.

"Utilities" is one of CFA’s primary research areas, and its website features a number of well-written studies and press releases assessing deregulation and the most recent proposals by the Federal Energy Regulatory Commission (FERC) to transform how the nation’s electric transmission systems and wholesale electric markets are regulated

For example, a recent CFA study concluded that the federal push to deregulate and restructure the electric utility industry could increase the price of electricity by tens of billions of dollars. The study, entitled All Pain and No Gain, cited repeated examples of the abuse of market power, excessive scarcity overcharges, inefficient transactions costs, and a sharp increase in the cost of capital outweigh any conceivable efficiency gains.

CFA recently teamed with Consumers Union to issue a joint statement criticizing FERC’s standard market design proposal for wholesale electric markets. The two organizations maintain that the proposal violates the Federal Power Act's requirement that electricity rates be just and reasonable and would not protect consumers from the type of manipulative behavior engaged in by energy traders such as Enron during 2000 and 2001.

The joint statement also argues that, "Electricity markets around the country are in turmoil, and consumers' electricity service is becoming more costly and risky. Rather than bring stability to markets, this proposal will introduce more costs and more risks for consumers."

The National Low Income Energy Consortium
www.nliec.org/partner.htm

Founded in 1986, the National Low Income Energy Consortium (NLIEC) brings together public, private, and nonprofit sector organizations and individuals working to reduce the energy hardships and crises faced by low-income consumers by:

• Finding common ground among diverse groups that work with, serve or represent low-income energy consumers
• Exploring, exchanging, and promoting innovative ideas and successful efforts that improve the ability of low income consumers to access and afford energy
• Setting an agenda for low income energy policy at the federal, state, and local levels.

NLIEC’s website highlights its "The Cold Facts," a publication that examines the financial and social impacts of high home energy costs on the working poor and senior citizens and the challenges presented by a deregulated energy environment. For example, the study points out that the average low-income family spends about one in five of its dollars on home energy costs every year.

NLIEC has an annual conference that explores solutions to reducing energy hardships faced by low-income families. Presenters offer the most current information about utility restructuring and its impact on low-income households, innovative weatherization, conservation, energy efficiency and energy assistance programs, along with what is changing in government low-income energy programs. Information about current and past conferences is available on the website.

American Public Power Association
www.appanet.org/legislativeregulatory/staterestructuring/index.

The American Public Power Association (APPA) represents the nation's more than 2,000 community-owned electric utilities, which serve more than 40 million Americans. Created in 1940 as a non-profit, non-partisan organization, its purpose is to advance the public policy interests of its members and their consumers, and provide member services to ensure adequate, reliable electricity at a reasonable price with the proper protection of the environment.

APPA sponsors "Restructuring Reconsidered," a web page with summaries of state restructuring laws, including aggregation provisions, state tax initiatives, public benefits, consumer privacy and public information issues.

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