Reviewing the FERC chairman's first year, and what he might do next.
This September, Pat Wood III completed his first year as chairman of the Federal Energy Regulatory Commission (FERC). Some long-time FERC watchers gave Fortnightly some insights into how this chairman has performed so far, and what we might expect from him in the future.
Will FERC's market solution wipe out state commissions?
One might say, when it comes to FERC, some state public utilities commissions' lack of faith is disturbing—to paraphrase Lord Vader. It's also necessary, as any journalist would tell you. The FERC NOPR on standard market design (SMD)—which completes the "trilogy" of regulation on wholesale markets, as chairman Pat Wood described it—had some state PUCs blasting the NOPR even before its July 31 release.
Why grid owners don't like FERC's new rules on gen interconnection.
A year ago, when a group of electric utilities in the Southwest signed off on deals to hook up new generators in Arizona with an innovative "common bus" treatment for two adjoining switchyards at the Palo Verde hub, the Federal Energy Regulatory Commission (FERC) was quick to heap on the praise. "Attaboy," said FERC's Pat Wood, at the commission's meeting of July 25, 2001. Nevertheless, over the past twelve months, FERC twice has proposed new rules to govern the way in which new power plants gain the right to interconnect with the interstate transmission grid. These new rules on gen interconnection form an essential part of the puzzle more aptly known as the standard market design (SMD).
Credit ratings agencies put the squeeze on merchant power.
Have they gone too far? Have ratings agencies become overzealous in their efforts to rein in energy merchants? Many in the industry are coming to that belief after Aquila, one of the industry's most respected companies and leaders, announced it would exit the merchant energy trading sector in late July. It said it could no longer meet the credit requirements imposed by ratings agencies to maintain that business.
FERC... SEC... CFTC...Congress ... Ratings Agencies... Stockholders... Bondholders... Private Equity Investors?
No one has yet quantified or qualified the devastation to industry reputation, electric competition, or energy companies' future earnings power caused by the current round of energy trading scandals that is shaking the industry to its core.
Letters to the Editor
Merchants' trading volumes and revenue are still too inflated.
EPSA exec rebukes McCullough's claims.
FERC finds the states have teeth, too.
Most pan FERC NOPR, but gas association eyes FERC role.