Electric Market Study
The Contractor shall:
A. Review Louisianas current, historical and projected competitiveness:
1. Profile the role of electricity in the Louisiana economy.
2. Benchmark and compare the levels, stability and reliability of
Louisianas electrical rates and service levels in other U.S. states
and foreign countries. Include an assessment of generation,
transmission and distribution capital investment,
investment/depreciation ratios, and operating efficiency of assets.
Identify linkages between economic performance (GDP, capital
investment, new job creation and wage rates) and electrical utility
rates and reliability. Describe factors that have influenced
Louisianas competitive position over time.
3. Forecast trends in national and global electrical rates, regulation
and competitive practices (including the impact of potential carbon
taxes and other green house gas legislation) and their implications
for Louisianas future competitiveness.
B. Examine best practices for electrical utility markets in terms of enhanced
impact upon economic development performance. Assess practices of
highly performing states/countries. Parameters include:
1. Regulation, oversight, and competitive framework;
2. Fixed rate (multiple years) offerings (e.g., rate guarantees for
targeted projects);
3. Generation technology (including clean/renewable energy sources);
4. Transmission network;
5. Distribution;
6. Business development programs or incentives; and
7. Programs for large energy users (manufacturers).
C. Identify potential options to deliver improvements to electrical rates (price
and stability) and reliability that may increase Louisianas competitive
position from an economic development perspective. Estimate cost,
feasibility, impacts to rates and reliability, and impacts to economic growth
of identified solutions.
1. Discuss and evaluate major long-term options.
2. Discuss and evaluate targeted near-term opportunities.
