Talk about a triple play. Up at bat, electric competition seems to be riddled by numerous anti-choice strikes, including new FERC standards, Enron's collapse and general post 9-11 malaise and economic confusion. Here's a quick rundown of the majors involved in the current triple-header threat: TRADING 1. Strike One: FERC's new market power test. Under the latest tenets, if a company controls generation greater than its peak demand, rates must be based on per-unit production costs, not on market-based prices. FERC claims the directive would address much-needed market-power issues concerning large utilities that could influence energy pricing in their service territories. 2. Strike Two: The imminent demise of Enron, one of the most notable and aggressive proponents of competitive electric markets, may cause states like Arkansas, Montana, New Mexico, Oklahoma and others-already teetering on the brink of open competition-to lock out further pro-competition moves. 3. Strike Three: Since Sept.ll, 2001, consumers have clearly turned their attention away from energy issues. Deloitte & Touche's new Consumer Awareness Survey of Electric Deregulation in the USA showed 39.7 percent of American consumers were aware of changes in the electric industry, down from 50.5 percent in an earlier survey. This move reversed the current five-year trend, which showed an ever-increasing consumer awareness of open electric competition.
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