Utility De-Regulation

Five-year de-regulation phase-in incudes:

• Transition charges phase-out
• Advantages for big users
• Real-Time Pricing leads to high demand charges and unpredictable utility bills
• Power quality may be un-manageable

Federal Energy Regulatory Commission's (FERC) Order 888 and California's Assembly Bill AB1890 take effect March 31, 1998 to open the electricity generation and distribution markets. Over the next five years, utility charges will fluctuate to supply and demand interactions. Demand charges are becoming universal as new watt-meters will keep track of your instantaneous peak demand, and compute your monthly bill. Demand charge may well become a major portion of your monthly bill. Smaller users of energy need to understand the implications of these changes and be equipped to control, or minimize their energy cost now. New Title 24 & In-door Air Quality and environmental requirements will require additional instrumentation and control.