Fortnightly Magazine - February 1 1998

Integrating Metering & Information Systems

YEAR 2000. MILLENNIUM. DEREGULATION. Each word strikes fear into the heart of meter manufacturers and utilities alike. Like the turning of the century, deregulation is coming for the electric utility industry, and sooner than we think. How will it affect the metering industry?

The first real indication can be found in California. There, by order of the state public utilities commission, the customer's energy supplier (the energy service provider or the utility distribution company) will, for the time being, own the meter.

Should Metering Stay at the Stand-Alone Disco?

MANY STATES ARE CONSIDERING THE IDEA OF opening billing and metering to competition at traditional distribution companies. %n1%n Electric utility executives can no longer assume that a regulated monopoly distribution company, or "disco," will retain control of both the "wires" function and billing and metering services. %n2%n

This new prospect raises questions: Should a disco seek to retain billing and metering as a regulated monopoly, complete with the obligation to serve all customers requesting electric connections?

SPP's Transmission Pricing

On Dec. 19, attorneys for Southwest Power Pool Inc., filed with the Federal Energy Regulatory Commission in Washington D.C., an open-access transmission tariff to provide for "one-stop-shopping" for short-term firm and non-firm point-to-point transmission service across seven southwestern states, SPP submitted the tariff as agent for its participating member public utilities and on behalf of all of its members. See, FERC Docket No. ER98-1163.

Frontlines

Gas utility executives never tire of telling how the regulators won't let them make money any money selling gas.

Interstate Power Co., which distributes both gas and electricity in Illinois, laments that no one understands: "Almost all small volume customers do not realize that their local distribution company does not make any money on the sale of gas¼ even large transportation customers have difficulty dealing with the concept."

So why would any LDC oppose retail gas competition?

People

The American Gas Association elected its board of directors for 1997-98. David W. Biegler, president and COO of Texas Utilities Co., was elected chairman. Richard E. Terry, chairman and CEO of Peoples Energy Corp., was elected first vice chairman and Gary L. Neale, chairman, president and CEO of Northern Indiana Public Service Co., was chosen second vice chairman.

Beth Emery was appointed vice president and general counsel to the California Independent System Operator executive management team. Emery was previously a partner in the law firm of Sutherland, Asbil & Brennan.

V