Electric utility customers are experiencing some of the largest price increases in decades. This is due in part to the rising cost of fuels and the expiration of rate caps in states that have chosen to operate in a competitive market. For a number of years, the electric utility industry has experienced dramatic changes in the way they conduct business. Today, the utility industry is a blend of competition and regulation. Three of the member states of the SSEB, along with a number of other states nationally, are operating in a competitive retail market. The remainder of the states has continued in a regulated rate environment.

The Energy Policy Act of 2005 enacted changes in the electric utilities industry. Mandatory and enforceable reliability rules now reside with the federal regulatory body as opposed to states. While states have the authority for siting transmission infrastructure, the federal government can authorize the siting if it is not done in a timely manner. With the broadened responsibilities at the Federal Energy Regulatory Commission, there appears to be increasing movement toward regionalization.

The Electric Utility Task Force, composed of Southern States Energy Board members, was established in 1997. The Task Force provides a regional forum for the southern states to exchange knowledge and ideas on an ever changing electric utility industry. SSEB’s Vice Chairman, Senator John C. Watkins of Virginia, and Dr. Patrick R. Esposito, West Virginia Energy Advisor and Governor Joe Manchin’s Alternate to the Board, serve as co-chairs of the Task Force.