As regulators continue to investigate industrywide restructuring as an answer to regional electric rate disparities and calls from large consumers for price reductions, the trend of dealing with...
SDG&E Touts PoolCo, Opposes Forced Spinoffs
San Diego Gas & Electric (SDG&E) has filed comments to support the "majority proposal" by the California Public Utilities Commission on deregulating the electric utility industry, which calls for formation of a wholesale power pool.
SDG&E noted that while a key element of the proposal involved creating an independent system operator, the company would go further and set up a regional transmission company to own the grid. Moreover, SDG&E advocated several steps to eliminate the influence of any participants who might possess or later acquire market power:
s Performance-based rates (PBR)
s Contracts for differences for certain plants
s Monitoring rules (with sanctions)
s Transmission upgrades
s Divestiture of generating stations or individual units.
SDG&E opposes a forced sale of hundreds of power plants in California. Instead, it prefers a default PBR mechanism to get the proposed Western Power Exchange operating by 1997. SDG&E endorsed PUC's "cooperative federalism" idea as "workable," and predicts that California restructuring can be implemented without any changes in state or federal law.
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.