Electric Industry Restructuring Would Bring Customer Choice to Colorado.

DENVER--(BUSINESS WIRE)--Oct. 12, 1999--

A group of Colorado industrial electric utility customers has joined forces as the Colorado Industrial Energy Consumers (CIEC) to advocate restructuring the electric utility industry in order to provide customer choice. The group has communicated its position whenever possible to the Colorado Electric Advisory Panel, created by the state legislature to address electric utility restructuring.

Members of CIEC have pursued rate and regulatory issues in the electric and natural gas utility industries for the last decade. With experience in successful electric restructuring in other states where they do business, CIEC believes it is time for Colorado to similarly benefit. Members supporting restructuring in Colorado include: BP Amoco, Ball Corporation, Conoco Inc., Coors Brewing Company, Holnam, Inc., IBM and The Shell CO2 Company, Ltd.

"Fundamentally, any investigation into restructuring should include asking consumers what they want," notes Tom O'Donnell, Holland & Hart attorney representing CIEC. "CIEC supports the opportunity to purchase electricity in a competitive market. To do this, the electric utility industry must be restructured." Various survey results indicate that CIEC members are joined in their desire for electric restructuring by residential, small commercial and industrial customers.

O'Donnell, who spoke for CIEC at a public meeting held in Denver in August, continues: "There is a tremendous amount of misinformation on this topic. Some electricity suppliers that currently enjoy monopoly status suggest restructuring means prices will rise and reliability will fall, with nobody to answer the phones at the utilities when it happens. This simply is not the case in other states where restructuring has occurred."

The members of CIEC strongly support a restructured electric utility industry, which includes the right to choose individual electricity providers. The advantages would include lower prices, technological advancements, increased efficiency, new and innovative service offerings, enhanced economic development, and retention of existing businesses and jobs. These benefits would impact residential, commercial and industrial customers alike.

"At last count, roughly half the United States, comprising over 60 percent of the nation's electric consumers, has committed to initiate retail competition," states O'Donnell. "Consequently, customers in those states will realize the significant benefits of competition. For example, in Montana where utility costs were already low, the price of electricity fell with restructuring. Electricity costs for residential, commercial and industrial customers also declined in California and Pennsylvania under restructuring. Colorado's electric consumers are being left behind.

"While Colorado was once regarded as one of the lower-cost western states, it can no longer claim that status," he concludes. "As other states around it restructure their electric utility industries (with corresponding lower prices), Colorado has become one of the higher-cost western states. All of our electricity consumers will benefit from correcting this situation as soon as possible."