Positioning the electric utility to build information infrastructure
In two particular respects (briefly investigated in this study from a lawyer`s perspective), electric utilities appear uniquely well-positioned to contribute to the National Information Infrastructure (NII). First of all, utilities have legal powers derived from their charters and operating authorities, confirmed in their rights-of-way, to carry out activities and functions necessary for delivering electric service. These activities and functions include building telecommunications facilities and undertaking information services that have become essential to managing electricity demand and supply. The economic value of the efficiencies made possible by telecommunications and information could be substantial. How great remains to be established, but by many estimates electric utility applications could fund a significant share of the capital costs of building the NII. Though utilities` legal powers to pursue such efficiencies through telecommunications and information appear beyond dispute, it is likely that the effort to do so will produce substantial excess capacity. Who will benefit from this excess capacity is a potentially contentious political question that demands early resolution. Will this windfall go to the utility, the customer, or no one (because of political paralysis), or will there be some equitable and practical split? A second aspect of inquiry here points to another contemporary issue of very great societal importance that could very well become the platform on which the first question can be resolved fortuitously-how to achieve universal telecommunications service. In the effort to fashion the NII that will now continue, ways and means to maximize the unique potential contribution of electric utilities to meeting important social and economic needs--in particular, universal service--merit priority attention.
Year of publication: |
2008-02-12
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Subject: | energy planning, policy and economy | general and miscellaneous//mathematics, computing, and information science | DATA TRANSMISSION SYSTEMS | FINANCING | ELECTRIC UTILITIES | DATA TRANSMISSION | COMPUTER NETWORKS | INFORMATION SYSTEMS |
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