Distributed Generation. California opened a rulemaking proceeding to consider regulatory reforms in electricity distribution service, with a possible focus on distributed...
The American Gas Association
(A.G.A.) forecasts a 3.4-percent increase in natural gas use for 1995, to 22.5 quadrillion British thermal units (quads) from 21.7 quads in 1994. "Such an increase would continue an eight-year trend that has seen natural gas consumption rise nearly 30 percent since 1986," Michael Baly, A.G.A. president, noted in a presentation to New York securities analysts. Industrial sales (including nonutility generators) should increase 3.2 percent; residential and commercial sales, 3.6 percent; and electric utility sales, 2.6 percent.
In the long term, A.G.A. expects natural gas consumption to account for 26 percent of the nation's total primary energy use by 2010. Gas demand should rise by 4.2 quads, or 19 percent, between 1994 and 2010, with an annualized average of 1.1 percent growth.
The California Public Utilities Commission's (CPUC's) requirement that California utilities buy electricity from qualifying facilities (QFs) at above-market prices is not going down easily. In fact, the decision has stuck in the craw of San Diego Gas & Electric (SDG&E), which has appealed to the Federal Energy Regulatory Commission (FERC), charging that the CPUC has violated provisions of the Public Utilities Regulatory Policies Act (PURPA). Southern California Edison filed a similar appeal with the FERC in January. SDG&E estimates that the CPUC decision, adopted on December 21 as part of its Biennial Resource Planning Update (BRPU), will cost the utility approximately $511 million in higher electricity costs. The SDG&E appeal came one week after the FERC ruled in a case involving Connecticut Light and Power Co. that states may not set rates higher than a utility's avoided cost of purchasing power from QF's (Docket No. EL93-55-000). t
W. Lynn Garner is senior writer of PUBLIC UTILITIES FORTNIGHTLY.
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