As there are Only Two Stable Paradigms, the electricity-regulation bill approved by Ohio’s Senate is just a new mistaken experiment under economic first, reliability second, tinkering.

Mr. Paul Wilson
The Columbus Dispatch, Ohio

Dear Mr. Wilson,

On Wednesday, August 29, 2007, I wrote the article Restructuring of Ohio’s Power Industry Business. It seems that the message didn't get to the stakeholders. So, I will give a new warning to them.

Today, in the news “Electricity-regulation bill wins Senate approval,” you inform that “The bill, supported by a coalition led by manufacturers, would require utilities to prove that competition exists before moving to market-based pricing, rather than regulator-approved rates, in 2009. After tweaks in committee hearings, the bill also would require utilities to ensure that what customers pay in a deregulated system is "comparable" to rates on, 2008.”

The public needs to be aware that the approved Ohio’s Senate Bill has a big flaw: for competition to exist, utilities as we know them would disappear. For retail competition to exist there is a need to do without incumbent retailers, as the utilities need to be transformed into integrated (transmission and distribution) transportation utilities.

The central issue, however, is that the transportation utility is not a subject of congressional debate, but the subject of engineering planning, operation and control, to satisfy an ultraquality imperative, just like nuclear power plants and space flight vehicles. As there are Only Two Stable Paradigms, the electricity-regulation bill approved by Ohio’s Senate is just a new mistaken experiment under economic first, reliability second, tinkering.

In the process to allow competition, the Public Utilities Commission of Ohio should shift to prudential regulation from regulations on price controls. So one important question the House Public Utilities Committee needs to answer to go forward is: Can We Concentrate on Results? Please hit the link with the question to learn the answer.

Please forward this message to the stakeholder’s representatives.

Best regards,

José Antonio Vanderhorst-Silverio, Ph.D.
Systemic Consultant: Electricity

Already posted on November 2nd, 2007, in www.energyblogs.com.