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Competition in the Electric Industry Emerging Issues, Opportunities, and Risks for Facility Operators (1996) / Chapter Skim
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Opportunities and Risks in Electric Competition: A View from the Department of Defense
Pages 62-65

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From page 62...
... Sometimes they were successful and sometimes not, depending on whether the state public utility commissions were predisposed to subsidize one rate class or another. Today's changing circumstances demand a new relationship with power suppliers, including the following: The ability to take advantage of competition for supply and the economic benefits that result from it.
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From page 63...
... Report to Congress The Department of Defense submitted a report to Congress on March 27, 1996, on ways to buy electricity at the lowest cost, identify regulatory or legal impediments to achieving lowest cost, and identify changes in legislation that would be needed to achieve cost savings. The report, "Procurement of Electricity from the Most Economical Source, " was prepared in response to a provision in a 1995 House bill (section 357 of H.R.
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From page 64...
... Utilities have little incentive to provide Defense installations access to the transmission grid to buy electricity from generators that sell at lower prices. One way to overcome that barrier, the report suggests, would be to define Defense facilities as "eligible customers" under section 211 of the Federal Power Act.
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From page 65...
... The Department is also working with others that want to provide services and products that utility companies have traditionally provided. In general, it is trying to maximize the net benefits to society as competition begins to pervade the electricity industry.
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Key Terms

  • buy electricity
  • mission support
  • lowest cost
  • wholesale power
  • electric institute

  • rate negotiations
  • utility costs
  • public utility
  • defense facilities
  • edison electric

  • rate class
  • power act
  • changing circumstances
  • nonutility suppliers
  • achieving lowest

  • energy policy
  • achieve cost
  • performance review
  • installations access
  • report added

  • access fees
  • appropriations act
  • basic objective
  • lower prices
  • state public

  • procure electricity
  • identify changes
  • mandatory retail
  • utility commissions
  • forbids competition


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