Letters to the Editor
To the Editor:
"Frontlines" from the Nov. 1, 2003, addressed what Richard Stavros called "AEP's Gutsy Gambit." In the process of panning AEP's strategy, Mr. Stavros demonstrates no understanding or appreciation of the state law issues he purports to address in his essay. I am responding because, by unmistakable implication, Kentucky is one of the "certain state regulators" he repeatedly takes to task.
Perspective
Locational pricing makes the network secure, since the utilities and other market participants get 'paid' to monitor the grid.
The recent pressure on the board and stakeholders of the Midwest Independent Transmission System Operator (MISO)-to postpone the startup of energy markets and concentrate instead on "reliability"-is truly unfortunate. It allows opponents of restructuring to continue to pose a false choice: You can have markets or you can have reliability, but never both.
Benchmarks
A successful initiative should reduce state dependence on volatile supplies.
California's Renewables Portfolio Standard (RPS) requires retail sellers of electricity to increase the relative percentage share of all such sales represented by renewable electricity by an absolute increment of at least 1 percent of additional share per year, thus achieving a releative share of at least 20 percent of all power sales by 2017.
Commission Watch
FERC's AEP ruling begs the question: Can the feds bypass states that block transmission reform?
In its search for the perfect power market, the Federal Energy Regulatory Commission (FERC) at last has joined the battle that lately has brought state and federal regulators nearly to blows. A recent ruling puts the question squarely on the table:
Business & Money
The consequences of exuberance are all around us.
Much of the 160 GW of new generation capacity added to the U.S. inventory since 1998 is now under water, economically speaking. At a per-megawatt cost of $300, this represents $50 billion of investment-much of which is concentrated in Texas (23 GW), Illinois (14 GW), and Georgia (11 GW). The key question for both merchant and other plant owners is how long it will take for plant values to recover.
Technology Corridor
What made BG&E's system more reliable than Pepco's?
Reliability and customer information systems (CIS) are rarely mentioned in the same breath. After all, utilities spend millions on their outage management systems to help ensure reliability. But in the wake of Hurricane Isabel last fall, the CIS at Baltimore Gas and Electric (BG&E) gets kudos for helping the utility keep on top of a widespread outage.
Financial players bring credit depth to energy markets, but will they play by the rules?
The center of gravity for energy marketing and trading activity is moving from Houston to Wall Street. Some major financial institutions already have plunged into the market, while others are testing the waters, gearing up to participate in a bigger way. Already their impact is being felt, and it is most definitely welcome.
Will the CFTC move Into FERC's house?
Most of us in the energy industry have long thought that the "transmission of electric energy in interstate commerce" falls within the exclusive jurisdiction of the Federal Energy Regulatory Commission (FERC). The same goes for electric sales at wholesale, if also conducted in interstate commerce. We know that because the law1 and the courts tell us so. And natural gas is much the same.2
Utilities search for ways to combat viruses and spam.
If you had to pick a couple of technologies that modern utilities can't function without, e-mail would have to top the list. Yet it usually doesn't grab the attention of executives these days nearly so much as outage management or SCADA systems.
The coming year may change that, as problems from spam and viruses reach near-epidemic proportions.
E-mail, and viruses, and spam-oh my!
A cost-benefit study shows the value of adding synchronized generating reserves to prevent blackouts on the scale of Aug.14.
If nothing else, the blackout of Aug. 14 showed just how physically vulnerable the electric transmission network has become to problems that begin at a very localized level. That vulnerability stems in part of the greater volume of long-distance transactions imposed on the grid by today's power industry.
