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Fortnightly Magazine - September 15 1997

People

Robert L. Digan II was hired by Semco Energy as its senior v.p. and CFO. Digan joins SEMCO from Supershuttle International.

United Cities Gas Co. has promoted Ann S. Baldwin from purchasing assistant manager to purchasing manager.

Scott B. Foster has left the International Energy Agency in Paris to join Cambridge Energy Research Associates. CERA also hired Gary Hunt, former COO at East Bay Municipal Utilities. He will serve as the company's North American electric power project director. Hunt will advise clients on responses to changes in the electric power business.

N.J. Extends Economic Development Programs

Phillip S. Cross

The New Jersey Board of Public Utilities has authorized Public Service Electric and Gas Co. to extend its existing economic development programs through July 1999.

The programs include construction and building credits for non-residential consumers who expand into newly leased or purchased vacant building space and increase their electric or gas energy use as a result. The program also includes an electric, off-peak employment service for non-residential customers that increase consumption of off-peak electricity as a result of increased employment levels.

Joules

Follow the arrows as California's direct access workshops map out who will have access to electric customer data.

In its latest order implementing direct access for electric customers, the California Public Utilities Commission told Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric to conduct workshops to recommend rules on the release of customer information in a deregulated electric industry.

The PUC offered guidelines.

Colorado Moves on Gas Unbundling

Phillip S. Cross

The Colorado Public Utilities Commission is expanding its investigation into the unbundling of natural gas local distribution services and rates.

The staff investigation follows a report on gas industry restructuring to the state Legislature by Hagler Bailly, a consulting firm, and a commission hearing on the report. According to the commission, this "next step" in the review process is designed to solicit further input from stakeholders and to refine the issues into an unbundling framework.

CalEnergy Halts Hostile Takeoveer Attempt

Lori A. Burkhart

CalEnergy Company Inc. subsidiary CE Electric Inc. in mid-July appeared poised to take over New York State Electric & Gas Corp. But NYSEG fought the hostile takeover and won.

Although NYSEG had asked the New York Public Service Commission and the Federal District Court for the Southern District of New York to intervene, in the end, CalEnergy cited "lack of shareholder support" as its reason for terminating its bid.

A takeover attempt. CalEnergy Company Inc.

N.Y. Fills "Vacuum" Asserts Wheeling Authority

Phillip S. Cross

The New York Public Service Commission has asserted authority to mandate direct-access pilot programs to give supply choice to energy consumers, noting that state authority is crucial to filling a regulatory "vacuum," since the Federal Power Act withholds authority from the Federal Energy Regulatory Commission to mandate retail wheeling.

The case involved a pilot program developed by Dairylea Cooperative Inc.

Georgia Proposes Gas Rags

Lori A. Burkhart

The Georgia Public Service Commission has established standards for issuing certificates to marketers to compete under the state's Natural Gas Competition and Deregulation Act.

Under the standards, candidates must show their creditworthiness. To compete, a marketer must prove that its capital base or other financial resources can withstand the business and financial risk and absorb losses that might occur in providing firm gas service to retail customers.

S.B. 215, which was signed into law in April, established a regulatory framework to deregulate the gas industry.

Gas Prices Spark Action

Phillip S. Cross

Unexpected price increases for natural gas during the past winter heating season have stimulated action by state regulators across the country. Most recently, North Carolina and New Mexico have approved changes in adjustment clause and billing rules to temper the effect on consumers.

North Carolina. The North Carolina Utilities Commission opened a generic proceeding to consider shortening the notice period required for changes to benchmark natural gas commodity rates by local distribution companies.

TVA to Slash Debt, Reduce Employees

Lori A. Burkhart

The Tennessee Valley Authority has unveiled a 10-year business plan that includes a 50-percent debt reduction and a 15-percent reduction in the total cost of power by 2007.

"Our goals for 2007 are to reduce the wholesale cost of power from the current 4.11 cents per kilowatt-hour to 3.46 cents, slash TVA's debt in half to $13.8 billion and respond to changing customer needs," said TVA CFO David Smith.

The Ten Year Business Outlook recommends a price increase in 1998 (em its first in 10 years (em which should boost TVA's revenues 5.5 percent.

Ratepayers to Find Emissions Allowance Pool

Phillip S. Cross

The New York Public Service Commission has authorized Niagara Mohawk Power Corp., to set up an emissions reduction credit pool to assist economic development efforts in the state.

It also approved the utility's plan to fund the pool with more than $700,000 of existing deferred credits owed to ratepayers from previous sales of sulfur-dioxide allowances.

The company plans to sell the credits at market value and as part of special discount electric service tariff offerings.

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