Calif. agency OKs broadband via power lines test
Thu Apr 27, 2006 2:32 PM ET

SAN FRANCISCO (Reuters) - The California Public Utilities Commission
approved a plan on Thursday allowing providers of high-speed Internet
services to test using electricity lines to deliver online access
throughout the state.

CPUC commissioner Rachelle Chong, who drafted the plan, said broadband over
power lines, or BPL, could become a new competitor to Internet services
delivered via telephone, cable and satellites and help reduce prices for
consumers.

BPL uses existing utility lines delivering power to neighborhoods to carry
broadband signals into homes.

It has been touted by equipment makers and regulators as a possible
competitor to cable and telecommunications services, which handle almost
all of the roughly 40 million U.S. residential broadband connections.

The regulatory commission adopted guidelines for electric utilities and
companies that wish to develop and test projects in California.

Among the guidelines, electric utility affiliates and other developers can
invest in and operate BPL systems.

Utility affiliates would have to follow CPUC rules for transactions between
a utility and a BPL affiliate to protect against cross-subsidies, the
commission said.