Implementation of aggregation in the North American power industry

One key to the impact of deregulation being transmitted to residential customers is the successful formation of aggregation groups and their expansion to include different classes of customers with convergent usage interests. This activity currently is being sponsored not only by for-profit brokerage entities, but also by associations of not-for-profit corporations such as hospitals and universities and by countries. The issues presented fall into several categories. (1) Technical rate taking--feasibility of making appropriate arrangements for alternative supply to consumers on a basis which appropriately reflects customer characteristics and also confers benefit on them all; (2) Legal--Compatibility of proposed arrangements with FERC wholesale regulation under Order No. 888 and emerging state regulation under the different restructuring regimes which their state utility commissions are implementing; (3) Marketing/Sociopolitical--Utilization of modern marketing techniques to effect the political consensus which is a precursor of alternative aggregation arrangements; (4) Financing--identification of capital costs; techniques for financing such costs, including monetization of the savings to be realized. The presentation will extrapolate the potential future significance of aggregation as a force in both restructuring and the development of merchant power projects. It will also assess the extent to which institutional, legal, technical or financial factors may modify the ultimate significance of aggression in the North American Power Industry