Fortnightly Magazine - July 1 1997

The board of directors of the Sacramento Municipal Utility District has approved the introduction of competition in its service territory. SMUD is opening up competition for 100 megawatts of power (em about 5 percent of its total load (em in its new "Direct Access Phase-In Program."

Starting in June, customers may contract with a new energy supplier. Customers could receive power from the new provider in July.

The Reed Consulting Group has released a study, which predicts that in 10 years, no more than six major companies will dominate the Northeast power market in each of the generation, wires and energy services industries.

The study also said the transition to competition primarily would affect generation and energy marketing.

On the Brink of Competition: RCG's Guide to the Northeast Power Market finds that New England and New York are setting the pace for the nation on power and fuel markets convergence.

Amtrak has entered an agreement with power marketer Enron Capital & Trade Resources to purchase electricity to power nearly 600 Amtrak and commuter trains each day on the Northeast Corridor between New York and Washington, D.C., and 100 trains a day on the Keystone Line between Philadelphia and Harrisburg, Pa.

Amtrak spends about $40 million a year for electric traction energy, which is purchased from several suppliers. The wholesale contract will reduce those costs nearly one-half.

The Conservation Law Foundation of Boston and AES Corp. have teamed up to bid on the 18 New England Electric System power plants recently put up for sale under the NEES divestiture plan that is part of its restructuring settlement.

The unusual alliance puts the conservation group with a former industry adversary. If the alliance succeeds in its bid, it likely would close up to five of the most polluting plants to reduce acid rain and smog. Also, it would protect about 30,000 acres of land from development.