Sweeping revisions to Order 888 are needed before true wholesale competition can take place.
Richard Stavros, Executive Editor
There’s been a lot of talk in the industry about new super powers for market enforcement, conferred by Congress on FERC in last year’s energy legislation. But this hasn’t been the case entirely. Many believe that FERC still labors at a disadvantage.
Does inappropriate market power explain the increase during late 2005?
Howard M. Spinner
Beginning around June 2005, prices in the PJM day-ahead locational market pricing energy markets and real-time pricing markets rose precipitously. Based on publicly available information, our study concludes that these price increases are not fully explained by higher loads and higher commodity fuel prices. Could higher energy prices be the result of the inappropriate exercise of market power rather than the appropriate result of market dynamics operating in the presence of scarcity?
(June 2006) Mirant Corp. appointed Jose (Joey) P. Leviste Jr. as chairman, president, and CEO of Mirant Philippines, and as a senior vice president of Mirant Corp. Ian C. Connor joined Goldman Sachs in 2006 as a managing director in its Power & Energy Group. Unitil Corp. shareholders elected Robert G. Schoenberger, Charles H. Tenney III, and Dr. Sarah P. Voll to its board of directors. Piedmont Natural Gas announced several changes in the company’s executive management team.
The resource overbuild in the West complicates the company’s efforts.
Gary L. Hunt and Devrim Albuz
Calpine’s announcement that it will shed 20 of its 92 power plants, close three offices, and lay off 775 more staff in a bid to emerge from bankruptcy caused by more than $22 billion in total debt was not unexpected. The question is whether these actions will be sufficient to get the job done.
New technologies are helping windpower mature as a viable power supply choice for utilities.
Michael T. Burr
Few people understand how to ride shifting winds better than Jim Dehlsen does. Dehlsen founded Zond Energy Systems 25 years ago, and steered the company through a series of major changes and challenges—the oil-price collapse of the 1980s; ambivalent energy policies, with on-again, off-again production tax credits; and the sale of controlling interests in Zond to Enron in the late 1990s. Should it come as any surprise, then, that Dehlsen still is bullish on windpower’s prospects?
When I became the Consumers’ Counsel for the state of Ohio in April 2004, natural-gas prices were hovering between $7/Mcf and $8/Mcf (thousand cubic feet). In the next year and a half, Ohioans saw gas prices double, peaking at a residential statewide average of $16.89/Mcf in the month of September 2005. The latter reflects the exacerbation of prices, already high, by hurricanes Katrina and Rita in the gulf region. The purpose of this article is not to focus on the national security and energy independence issues that arise from these circumstances, but rather to examine what we can do in the United States to ensure affordable and reliable supplies for residential consumers in both the short and long term.
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