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What's Ahead For Electric Utilities

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The Tampa Tribune

Published: December 23, 2008

As the city of Tampa works on a new long-term agreement with Tampa Electric Co., it might be worth keeping in mind three changes on the horizon for electric utilities.

First, coal will become more expensive. Whether through carbon taxes, cap and trade restrictions, or the cost of clean coal technology, this highly polluting energy source faces a future of increased barriers and expenses associated with its use.

Second, utility compensation needs to be based more on the conservation of electricity rather than the consumption of it. While the idea of a company making more money by selling less sounds contradictory, it is made possible through decoupling policies designed to encourage and reward efficiency and conservation.

Finally, as the "grow your own" energy movement gains momentum and power is increasingly produced locally via alternative sources, traditional large, centralized utilities will become less practical, efficient and cost effective.

Because these changes reduce pollution, security risks and eventually costs, it is critical any agreement with TECO does not protect the utility from these trends or deny this community the ability to benefit from them.

CHIP THOMAS

Tampa

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