Uniform Business Practices The Utility Perspective

1
Uniform Business PracticesThe Utility Perspective

• Working to Build a Competitive Energy Market for
  the U.S.
• Sharon B. Grove
• UBP Advisory Board, Utility Member
• March 2000

2
We Need Uniform Business Practices!

• A Lack of Standard Practices in Key Areas
• Customer Data, Enrollment (Switching
  Verification), Bill and Payment Handling, etc.
• causes the Utilities and Suppliers to have niche
  solutions for deregulation and
• results in confusion and creates reluctance for
  suppliers and customers to engage in choice
• Barrier to Retail Mass Market Development
• Higher Transaction Costs and Frequent
  Troubleshooting

3
Value of Uniform Business Practices (UBP)

• Customers, Marketers, Utility Companies Benefit
  by
• Understanding Complexities of Market Participants
• Preparing for Initial Open Access Effort
• Making Mass Markets Possible
• Reducing Rework
• Integrating Fewer Rules to State-to-State
• Lowering Prices /Improving Service

4
Positive Outcomes of this Effort

• Builds rapport and understanding with all market
  participants
• Creates a Guidebook to Open Access for the next
  24 to 36 months
• Provides a practical educational forum for
  Utilities especially those not yet in Open Access
• Provides a common platform for all utilities to
  move toward in Open Access

5
Details of the UBP Guidebook

• Overview
• Represents a set of recommended business
  principles and practices
• Recommended Practices are not intended to
  supercede existing laws regulations
• Where states have developed practices, UBP
  recommendations are intended as guidelines when
  existing practices are reviewed and updated
• Endorsement that there are costs associated with
  implementation and cost recovery needs to be
  considered

6
Details of the UBP Guidebook

• Progress on Initial Subjects
• Areas of Agreement
• Customer Enrollment Switching
• Load Profiling
• Areas of Continuing Discussion
• Customer Information
• Opt-in vs. Opt-out approach
• Customer Pre-enrollment List
• Billing Payment
• Receivables
• Payment Order

7
Overview of Timeline and Topics

• Practice Areas Covered in 1999-2000 Workshops
  Customer Enrollment Switching Customer
  Information Billing Payments
  Load Profiling
• Key Business Practices Remaining
• Metering (Parallel, integrated into final
  document) Licensing
  Creditworthiness Customer Service, Call
  Handling Dispute Resolution, Performance
  Standards Retail Natural Gas UBP
  
  Retail Load Settlement

8
Next Steps

• Where Are We Going?
• By July 2000 a consensus uniform practices
  document supported by a broad representation of
  industry stakeholders
• From Now to July Next Steps
• Produce Interim Report 3/00 Purpose
• Reflect initial work on consensus issues
• Ensure participants companies are on board
• Build support, educate, engage additional
  utility, marketer, regulatory consumer
  stakeholders starting with a 45 day comment period

9
Next Steps

• Continue Consensus Process in Year 2000
• monthly workshops on remaining issues
• list serve nominations and discussion
• web postings of preliminary consensus on workshop
  issues
• Outreach and Education to Industry Groups
• elicit comments
• Final Report July 2000
• Ask for Industry Endorsement

10
Observations from a UBP Vet

• The marketplace still needs guidance from
  regulators
• Face-to-face discussions are the most productive
  in driving to consensus
• The UBP effort is driving towards solutions to
  real deregulation issues and therefore needs to
  ensure that all parties are involved