Rhode Island Retail Choice "Promised Land" Is Out There, But PUC Needs Suppliers to Combat "Paternalistic" State Attitudes

The "promised land" for retail electric choice in Rhode Island is out there, but the PUC needs retail suppliers to fight against the default "paternalistic" attitude of many state policymakers, Rhode Island PUC Commissioner Paul Roberti told the National Energy Marketers Association National Restructuring conference.

Roberti said that "paternalistic" approaches to default service and other market design elements, "indeed create long-term hurdles to effective competition."

However, with the "awful" experience with recent National Grid default service rate hikes -- driven by wholesale market inefficiencies -- in which the PUC essentially "kicked the can down the road", Roberti noted that other state policymakers are calling for a default service rate that is even more divorced from market prices (such as through block or portfolio purchases), while legislators have also proposed a number of measures against retail suppliers, such as a consumer bill of rights.

Rhode Island, since its restructuring nearly 20 years ago, has been "stuck," and hasn't been able to take the "leap of faith" necessary to fully replace the vestiges of paternalistic rate regulation (default service) with a true market

The "promised land" is out there, Roberti said, but it isn't something the PUC can achieve "from the bench."

"Put some witnesses on the stand," Roberti urged suppliers, to convince policymakers with record evidence that supports any PUC movement to improve retail choice. Just filing written comments not subject to cross examination isn't enough, Roberti said

"Nothing is more important than having engaged intervenors," Roberti said, noting achieving workable retail competition is a "long-term effort."