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Electric industry deregulation update

The collapse of California's electricity market has caused regulators in other states to reconsider their efforts to deregulate retail electricity markets. Significant progress has been made on the wholesale competition front but major challenges must still be confronted. The framework for supporting retail competition has been less successful. Since the 2000-2001 California debacle, no additional states have announced plans to introduce competitive reforms. In fact, several states that had planned to implement reforms have delayed, cancelled or significantly scaled back their electricity competition programs. On the upside, the Federal Energy Regulatory Commission (FERC) continues to support policies to advance wholesale market reform. Additionally, the Energy Policy Act (EPACT) of 2005 creates new incentives and opportunities to help manufactures manage energy costs. In the absence of new opportunities related to retail energy procurement, energy managers must broaden their focus to include energy cost control through energy efficiency and other consumption related programs