Introduction to Uniform Business Practices
With the restructuring
of the electric and gas industries, a myriad of business transaction practices
must be created to facilitate interaction between competitive energy service
companies and regulated utilities. The necessary practices are usually
embodied in regulatory commission rules, utility tariffs, operating agreements
and contracts.
As states introduce
retail access, it has become apparent that business practices are varying
significantly across the nation. The lack of uniformity, if unchecked,
has the potential to be a significant impediment to the profitable market
entry and operation of competitive energy service providers.
Competitive energy
service providers differ from traditional utilities in that they usually
do business across multiple service territories and states. The diversity
in rules and procedures for providing essentially the same service in
different areas increases the costs to consumers and decreases the profits
of the competitive providers.
This lack of uniformity
could potentially restrict their entry into the competitive market place
and subsequently reduce consumer benefits from full retail access.
The effort to promote
uniformity across service territories and state jurisdictions is termed
"Uniform Business Rules" or "Uniform Business Practices."
Here we will call it "UBP" for short.
More on UBP:
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