The First REAL Electric/Gas MergerEnron's bid
to acquire Portland General heralds a new phase
in utility competition.
Why the Holding Company...
necessary to support the transmission of energy from resources to loads while maintaining reliable operation of the Transmission Provider's transmission system in accordance with Good Utility Practice." See, Promoting Wholesale Competition Through Open Access Non-Discriminatory Transmission Services by Public Utilities (Notice of Proposed Rulemaking an supplemental Notice of Proposed Rulemaking, Appendix B, Tariff Sheet No. 1, March 29, 1995, 70 FERC (pp 61,357.
8. As reported by Oak Ridge National Laboratory (ORNL), the cost of ancillary services ranged from .15 to .68 cents/Kwh and from 5 to 25 percent of generation plus transmission costs for a sample of 12 utilities. This large range stems, in part, from differing definitions of ancillary services between utilities. In addition, approximately 30 percent of ORNL's cost estimate of .41 cents/Kwh was for real power losses, a service that the FERC has decided not to require from transmission providers. Brendan Kirby and Eric Hirst, ORNL, Ancillary-Service costs for 12 U.S. Electric Utilities, March 1996.
9. Until recently, NGC also owned 2,088 megawatts of HPS plants, which it called upon to support the reliability of the grid. In January 1996, Southern California Edison Co. affiliate Mission Energy acquired First Hydro co. from the National Grid Co. for $1 billion. First Hydro, which controls 2,088 Mw of HPS assets in Wales, provides rapid generation response and will now sell electricity into the U.K. power pool on a competitive basis as an independent power producer.
10. Paul Davis, Coopers & Lybrand Consulting, London, Mary 10 1996. During 1995-96, revenues for ancillary services reached about $210 million, or .08 cents/Kwh. Strict comparisons between these ancillary services costs and the ORNL cost estimates cited previously are not appropriate because of differences in the definitions and elements of the ancillary services included in the cost figures.
11. For example, in their joint application to the FERC to form the Western Power Exchange (WEPEX), Pacific Gas & Electric Co., San Diego Gas & Electric Col, and Southern California Edison Co. describe how the WEPEX ISO would purchase operating reserves on the market through a daily auction, and ancillary services such as reactive power/voltage control through an annual bid process. Pacific Gas & Electric Co., San Diego Gas & Electric Co., and Southern California Edison Co., Joint Application for Authorization to Convery Operational Control of Designated Jurisdictional Facilities to an Independent System Operator, filed at the Federal Energy Regulatory Commission, April 29, 1996, p. 63.
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