Blueprint Issued for Future of Gas and Electric Distribution Companies

Over 200 Consensus-Based findings and Recommendations on Gas and Electric Distribution Company Business Models, Finances, Regulations, and Technical Issues

WASHINGTON, May 9 — After a year of deliberations, the Center for the Advancement of Energy Markets (CAEM) released the Final Report of the Distribution Company (DISCO) of the Future Forum today. 

California policy mistakes have resulted in the filing of bankruptcy for the largest distribution company in the U.S. Enron’s recent collapse has raised questions about the impact of deregulation and competition on companies’ financial health. No consensus model currently exists for how competitive energy reforms will impact distribution companies. In light of the risks to the nation of continued financial instability among energy companies and its concomitant harm to consumers, CAEM determined it was necessary to convene a national forum on these issues.

The Forum was comprised of approximately 50 stakeholder organizations representing a broad array of the industry and regulatory bodies which govern the industry. Given the consensus-driven framework of the Forum, and the in-depth examination of the issues facing gas and electric distribution companies, the Final Report is the only document of its kind and is expected to make a major contribution to policy-making in relation to gas and electric distribution companies.

“With increased competition in the electric and gas sectors, and the broad movement towards unbundling or disaggregating the distribution (the pipes and wires to homes and businesses) end of the business from a vertically-integrated company structure, distribution companies are facing growing uncertainty and risk,” said Jamie Wimberly, CAEM President. “On the other hand, a number of opportunities are arising as well for these companies.” 

“The primary purpose of the Forum was to thoroughly examine the issues and challenges facing distribution companies, and to make consensus-based recommendations that work to ensure healthy companies and happy customers in the future. There is no question much more needs to be discussed and debated, particularly the role of the regulated utility in the provision of new product offerings and services, but the Final Report is a substantial achievement.”

The Final Report contains over 170 pages of analysis, 6 guiding principles, 170 findings, and 100 recommendations. As part of its public mission, CAEM is pleased to make the full report available to the public at no charge. The Final Report of the DISCO of the Future Forum can be obtained by going to www.caem.org.

The Center for the Advancement of Energy Markets (CAEM pronounced KAY-EM) is a nonprofit organization founded in 1999 to promote market-oriented solutions to the challenges that confront the energy industry, other network industries and the nation. CAEM is not a trade association, a consulting firm, or a lobbying group. It is a think tank developing intellectual capital for the movement towards new public policies and regulations, new business models, and new technologies driven by competitive energy markets. 

For more information on CAEM or the DISCO Forum, contact Jamie Wimberly, President, at jwimberly@caem.org or calling 202-483-4443.