Legal and regulatory considerations for utilities entering the telecommunications market

Regulatory changes have enabled energy utilities to take advantage of revenue-producing telecommunications opportunities, some of which are unregulated. These opportunities may be attractive to utility management for their strategic planning purposes, not only in terms of possible diversification ventures, but also in making more efficient use of existing or future utility plants. A selective overview covers two major areas: (1) providing unregulated for-hire communications services over existing private microwave systems; and (2) entering the interexchange and exchange telephone markets by construction of fiber optic systems on transmission and distribution rights-of-way. The author discusses various regulatory treatments and federal preemption of inconsistent state regulations. He concludes with an analysis of the bypass issue.