FERC issues a surprising order regarding responsibility for LNG-related retrofit costs.
James E. Goddard
The answer to the question of who will be responsible for cost-mitigation measures to accommodate the introduction of large quantities of LNG into the U.S. pipeline grid remains up in the air for now, but there are signs pointing in one particular direction: toward ratepayers.
Why predictions from the Energy Information Administration may contain systematic errors.
Timothy J. Considine, Ph.D. and Frank A. Clemente, Ph.D.
Natural-gas estimates from the Energy Information Administration (EIA) are supposed to be “policy neutral.” Are they? Over the past decade, EIA forecasts for NG differ substantially from actual outcomes—even though overestimations of supply capabilities could lead to underestimating the costs of carbon regulations.
Systems heavyweight broadens its industry footprint.
With utilities anticipating heavy rate increases in the near future, they can ill afford to alienate their customers. At the very least, they need to equip themselves to face an upsurge in customer queries and billing questions, as ratepayers come to grips with the new reality.
In January 2004, FERC authorized AES Ocean Express LLC (AES) to construct and operate natural-gas pipeline facilities to transport revaporized LNG from an offshore receipt point at the boundary between the Exclusive Economic Zone of the United States and the Commonwealth of the Bahamas to onshore delivery points on the east coast of Florida. AES proposed to connect its planned pipeline to the pipeline system of Florida Gas Transmission (FGT). AES and FGT were unable to agree upon the terms and conditions to be included in FGT’s tariff regarding the LNG delivered through AES’ proposed pipeline, leading to AES filing a formal complaint with FERC, wherein it alleged that FGT sought to impose unreasonably restrictive gas quality and interchangeability standards on LNG delivered into the FGT system.
The spotlight is on. But true stardom will require more direction from utilities.
Richard Stavros, Executive Editor
Wind has become today’s hit—a potential blockbuster, even—but still needing that one big break. To make it big, utilities will have to lead the charge as owners. That will force utilities to consider and evaluate the significant credit implications that can arise when signing a power purchase agreement with developers that lack deep pockets, or implement fly- by-night schemes.
(August 2007) Avista Corp. announced that its board of directors elected Vice President Ann Wilson as vice president and treasurer, and Vice President Christy Burmeister-Smith will take over the post of vice president and controller. UniSource Energy shareholders voted to extend the service of its current board of directors. Sierra Pacific Resources elected Glenn C. Christenson to its board of directors. Pacific Gas and Electric Co. appointed John T. Conway site vice president of the Diablo Canyon Power Plant in San Luis Obispo County, Calif. And others...
Eco-Developer Pat Wood III explains how competitive markets are good for green business.
The debate over implementing comprehensive electric-competition policies throughout the U.S. economy still rages to this day. Pat Wood III, as the federal regulator, had to fight many tough, public battles in defense of his beliefs on open markets. But there is no bitterness from those battles, if there ever was. It’s quite the opposite. Interviewed at the American Wind Energy Association conference in early June, Wood punctuated his answers in the go get ’em, optimistic view of the world many remember him for at FERC.
The Southeast again is the battleground for fuels, technology, and market structure.
Gary L. Hunt
One sure sign of recovery in boom-and-bust power-generation markets is the renewed growth in the planning and construction of power plants. Active efforts are underway in generation development in the Southeast markets in spite of the high levels of generating reserve margins. With its traditional utility-dominated market structure and a preference for baseload generation, the Southeast is the battleground for the next round of power-generation development.
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