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News Digest

Fortnightly Magazine - May 15 1998

year of water made available through the Central Arizona Project.

EnergyOne LLC joins forces with GE Service Management in a co-branding effort to provide appliance warranties through utilities. Customers will pay for warranties, along with other EnergyOne products and services, through a single monthly bill.

KeySpan Energy Corp.'s gas distribution subsidiary, Brooklyn Union, will be the first utility in New York to transfer its non-safety-related maintenance and repair service to an unregulated subsidiary. The New York Public Service Commission had said that all utilities in the state must transfer their non-safety-related maintenance and repair services to subsidiaries or exit the business.

Electric Lite will begin offering Electric Lite Green, Oregon's first power option designed to have less of a negative environmental impact.

Power Pools & Reliability

REGIONAL TRANSMISSION TARIFFS. The Southwest Power Pool

Inc. won approval from the FERC for a regional transmission tariff allowing for pool-wide, short-term firm and nonfirm point-to-point transmission services using distance-based pricing. SPP utility members would continue to provide long-term service through their open-access transmission tariffs. The SPP, unlike other pools, historically had not provided power sales or transmission services to its members. Noting the change, Commissioner William Massey said SPP transmission customers now would be able to "one-stop shop" without having to pay multiple providers, which he saw as "progress." FERC Docket No. er98-1163-000, March 11, 1998.

NEW "ALLIANCE" ISO. Eleven investor-owned electric com-

panies have completed a preliminary report on a new independent system operator, Alliance ISO, aiming perhaps to file an application for certification by this summer. The report calls for elimination of pancaked rates; electricity carried from other ISOs would be subject to pricing reciprocity. The 11 companies are Monongahela Power Co., The Potomac Edison Co., and West Penn Power Co. (all three subsidiaries of Allegheny Power); Consumers Energy; Detroit Edison; Duquesne Light Co.; The Illuminating Co.; Ohio Edison Co.; Pennsylvania Power Co.; Toledo Edison Co.; and Virginia Power. Detroit Edison has said it will not participate in the next phase of development of the Alliance ISO.

INDEGO ISO. Idaho Power Co. said it will not join in an

application at the FERC that would have formalized the company's participation in IndeGo, a proposed regional independent system operator. Idaho Power was one of the original seven utilities that proposed the creation of IndeGo, which then grew to about 20 utilities in the region. Bill Pascoe, Idaho Power vice president for delivery, wrote to IndeGo Steering Committee Chairman Kip Runyan, citing three reasons for declining to move forward with Indego, including the slow pace of deregulation in Idaho and concern about whether the Bonneville Power Administration would join the ISO.

WISCONSIN POWER SHORTAGES. Wisconsin Gov. Tommy Thompson (R) and five state legislators introduced a compromise proposal to upgrade the state's overwhelmed electricity system, which was plagued last summer by power shortages and threats of rolling blackouts. The March 12 proposal unites recommendations made by three task forces, consisting of customers, utilities and the Wisconsin Public Service Commission. The plan seeks to streamline the state's utility regulatory process and encourage construction. Key items in the