Colorado Association of Municipal Utilities

Municipal utility representatives, REAs, small business representatives, rural interests and the Office of Consumer Counsel were united in opposing retail restructuring -- at this time.

Restructuring proponents came together in a coalition that included Public Service Company of Colorado, independent power providers, natural gas suppliers, environmentalists, and factory owners and big businesses that want the ability to shop around for cheaper power.

Despite the vote, two major players in the debate shifted their stance to support restructuring, after abstaining or opposing the idea earlier this year.

Karen Brown, director of the Colorado Energy Assistance Foundation, cast a surprise vote in favor of restructuring. She did so after expressing serious concerns about the process early on.

"I think we have virtual restructuring now," Brown wrote in a minority report to the rest of the Panel. "We're already seeing reduced levels of funding and lower levels of support from utilities. This virtual restructuring has occurred without any of the mitigation you would expect to see in a law. With restructuring, I think we could improve our circumstances. I want to be at the table working hard to get the solutions (low-income consumers) need."

A loose coalition of Panel members – including CAMU representatives – drafted two different reports it submitted to be included in the Panel’s final document. The first report is titled, "Keeping Electric Service Affordable and Reliable in Colorado: Retail Restructuring’s Time is Not Here and Not Now: Statement of the Panel Majority in Opposition to Retail Restructuring ." All 17 of the Panel members who voted against restructuring – including the Panel’s three municipal members -- signed this document.

Sixteen Panel members signed a more lengthy report that also will be included in the final EAP document.. The report details pitfalls that face industry restructuring. Phil Tollefson, Director of Colorado Springs Utilities, did not sign this report, opting instead to submit his own.

The Panel’s sent its report to the Legislature on November 1^st. Colorado Public Utilities Commission staff members are compiled and distributed the report.

Overall, municipal interests fared well in the Panel’s final report. Issues munis supported – as articulated in the CAMU Retail Wheeling Principles and by their work on the Panel – that are expected to be included in the final report are:

	An ability for munis to "opt-in" to a competitive electric market, if one develops.
	An agreement that open records and meeting requirements should apply equally to all electric utility providers in a competitive marketplace.
	Local governing bodies will retain complete control over their communities’ systems.
	Distribution territories should remain exclusive and facilities should not be duplicated.
	All utility providers, including munis, should be able to offer value-added products (e.g. telecommunications or cable services) in a competitive marketplace.
	Metering and billing functions should remain the responsibility of the incumbent distribution utility.