Oklahoma § 17-190.2 - Purpose of act - Goals of restructured electric utility

§ 17-190.2. Purpose of act - Goals of restructured electric utility

industry.

The purpose of this act is provide for the orderly restructuring

of the electric utility industry in the State of Oklahoma in order

to allow direct access by retail consumers to the competitive market

for the generation of electricity while maintaining the safety and

reliability of the electric system in this state.

A competitive and diverse retail electric market should result

in lower electricity prices for consumers, create business

opportunities, and encourage the development of increased and

enhanced services.

Monopoly utility regulation has been used as a substitute for

competition in the supply of electricity, but recent changes in the

energy marketplace and technology as well as the passage of the

National Energy Policy Act of 1992 and implementation of Order No.

888 by the Federal Energy Regulatory Commission have resulted in

increased competition in the electric generation industry. The

introduction of consumer choice in retail electric energy suppliers

will result in market forces rather than regulation determining the

cost and quality of electricity for all consumers.

Restructuring of the electric utility industry to provide

greater competition and more efficient regulation is a national

trend and the State of Oklahoma must aggressively pursue

restructuring and increased consumer choice in order to provide

electric generation service at the lowest and most competitive

rates.

The primary goals of a restructured electric utility industry

are as follows:

1. To reduce the cost of electricity for as many consumers as

possible, helping industry to be more competitive, to create more

jobs in this state and help lower the cost of government by reducing

the amount and type of regulation now paid for by taxpayers;

2. To encourage the development of a competitive electricity

industry through the unbundling of prices and services and

separation of generation services from transmission and distribution

services;

3. To enable retail electric energy suppliers to engage in fair

and equitable competition through open, equal and comparable access

to transmission and distribution systems and to avoid wasteful

duplication of facilities;

Oklahoma Statutes - Title 17. Corporation Commission

4. To ensure that direct access by retail consumers to the

competitive market for generation be implemented in the State of

Oklahoma by July 1, 2002; and

5. To ensure that proper standards of safety, reliability and

service are maintained in a restructured electric service industry.

It is in the best interest of the citizens of this state to

efficiently and expeditiously move forward to increased competition

in the generation and sale of electric energy. To ensure a

successful transition to a competitive marketplace, a thorough

assessment of issues and consequences associated with restructuring

shall be undertaken as provided by this act.

Added by Laws 1997, c. 162, § 2, emerg. eff. April 25, 1997.