The restructured energy market  is divided into the protected distribution monopoly and competitive products and services. The actual provision of source energy and energy related services are to be subject to the competitive forces of the marketplace. The historic relationship between the distribution utility and its organization that provides the source energy and /or competitive services and products is and will be of concern to the regulatory agencies.

The regulator wishes to assure that a "level playing field " will exist for all participants in the competitive service offerings and source energy sales. To monitor the use of the distribution utility's "market power", regulators have developed "codes of conduct" against which to judge the performance of the utility. The process of monitoring is furthered by the provision for an audit of compliance with the rules in the code of conduct and with a documented description of the planned activities the utility planned to adhere to under deregulation.

The regulator is concerned with two major issues. The first is that the code of conduct that covers the utility, its related competitive business segments, and its holding company are adequate to provide for the equal opportunity to compete for any non-affiliated purveyor of competitive services and products.

The second major issue continues the traditional role of the regulator in protecting the monopoly distribution company customer. In this case, the regulator wishes to specifically prevent and assure avoidance of any cross subsidies by the regulated utility to the non regulated affiliates.

What PMC Can Do For Your Utility

PMC can perform the effort to provide a compliance plan, strengthen your current plan or audit your implementation program. Our associates have created such plans for their own utilities. We are experienced in the review of such plans and their implementation. This assures you of advice that, when implemented, will meet the regulator's requirements.

Key elements of the compliance plan will include major sections covering:

Nondiscrimination in the processing of transactions and in business development;

Information Disclosure that protects against privileged access not specifically allowed;

Separation of books and records, assets and services, and employees;

Competitive Products/Services Offered by a Utility or Related Competitive Business Segment that meet the expected conditions for approval by the regulator;

Training that will be considered sufficient to indoctrinate employees and management; and

Reporting that will meet your specific regulatory requirements.