THE TRANSITION TO A COMPETITIVE ELECTRICITY MARKET:
Retail Choice, Consumer Education and Regional Cooperation

Report of the CONEG Energy Working Group
May 1998
 

Findings

• An informed public is essential to effecting a smooth transition to, and realizing the benefits of, a competitive retail market in electricity; currently, the public is woefully uninformed.
   
• Consumers seek information from a reliable, neutral party. Public education programs can inform consumers about retail choice, guide them in evaluating the choices offered, answer their questions and reduce confusion.
   
• All CONEG States are moving forward with public education programs; these programs vary in schedule, approach and scale.
   
• Sustained public education programs are needed because the public is likely to respond slowly to choice. Information about reliability of service and the environmental consequences of choice can provide consumers with a valuable basis for evaluating their participation in the market.
   
• The cross-border impacts of educational outreach activities can create real confusion among consumers, especially in light of differing schedules for retail choice implementation.

Opportunities for Regional Cooperation

• As part of their ongoing restructuring information activities, the CONEG States should focus special attention on sharing information about disclosure requirements and consumer education research, plans and programs.
   
• A "first alert" system can be a timely and effective tool for increasing cooperation and coordination among the states’ consumer education programs, while providing each CONEG state with timely notification of upcoming media-outreach activities.
   
• The CONEG Energy Working Group will work cooperatively with ongoing consumer education programs in state energy offices and public utility commissions to develop and implement a first alert system as an integral element of state consumer education programs for retail choice.

Accepted: May 8, 1998