Fortnightly Magazine - July 15 1998

Perspective

IN RECENT YEARS, THE high demand for local exchange codes from incumbent local exchange carriers and new competitors has mandated scores of new area codes across the United States, created through processes that generate a high degree of local controversy. Yet even after the new area codes are created, the demand for exchange codes for local calling areas continues unabated, leading in some cases to the exhaustion of exchange codes within brand new area codes in as little as two to three years -- a period much shorter than their expected life.

Byline: 
John B. Howe
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Special Report

DOES THE KYOTO CLIMATE CHANGE TREATY POSE A SEVERE threat to the U.S. economy or is that claim simply a "Chicken Little" prediction of detractors?

Pro-business Republicans, environmentalist bureaucrats and industry observers debated the merits of each position at the Ninth Annual Energy Efficiency Forum in Washington, D.C., on June 10.

One of the most vociferous opponents of the treaty was Rep. F. James Sensenbrenner Jr. (R-Wisc.), chairman of the House Committee on Science, who headed the Congressional delegation to Kyoto, Japan.

Other speakers included Ambassador Stuart E.

Byline: 
Joseph F. Schuler Jr.
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Off Peak

AMERICAN SUPPORT FOR FEDERAL RESEARCH AND DEVELOPMENT funding for renewable energy and energy efficiency programs is increasing. Conversely, American support of nuclear power and fossil fuels is on the decline.

That's according to a recent survey, America Speaks Out on Energy: A Survey of Federal Energy Funding Priorities, conducted by the Sustainable Energy Coalition.

A thousand registered voters were asked about federal energy budget issues.

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Will the Sun Set on PUCs?

WHEN 42 PUBLIC UTILITY COMMISSIONERS HUDDLED in private recently at the Brown Palace Hotel in Denver to discuss their roles come 2003, they came to a striking conclusion: Someday they might be out of business. Some said it would take five years, others said as long as 10.

"There was quite a bit of discussion and interest in commissions actually formulating what they call an 'exit plan,' by which they meant, in a kind of systematic way ... being prepared to wind back on their regulatory oversight," says Douglas N.

Byline: 
Joseph F. Schuler Jr.
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California's Electric Market: Are Customers Necessary?

A FREQUENTLY ASKED QUESTION UNDER CALIFORNIA's NEW electricity framework is, "Where have all the suppliers gone?" At a recent industry symposium, one large customer noted during negotiations with competitive energy suppliers that all five finalists had disappeared. The experience at my firm has been so draconian, but I have found that it is not unusual for half of the finalists to disappear in the bargaining. And when I say "disappear," I'm talking about something more extreme than simply reaching an irreconcilable difference.

Byline: 
Robert McCullough
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FERC's Plan for Electric Competition

WHY IS ELECTRICITY COMPETITION NOT WORKING? The principal reason is the failure of Order 888 to accommodate the economic and technological constraints of wholesale power markets.

Soon after Congress passed the Energy Policy Act of 1992, to give authority to the Federal Energy Regulatory Commission to compel electric utilities under its jurisdiction to wheel power for others, the FERC correctly recognized that piecemeal wheeling orders wouldn't work well without a tariff. A tariff would make the service quickly available to the user without the need for time-consuming negotiation.

Byline: 
Wallace Edward Brand
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Frontlines

THE LAST FEW TIMES I'VE HIT THE ROAD FOR A INDUSTRY conference or speaking engagement, someone invariably has come up to tell me how my picture on this page seems to be getting younger. OK, I confess. Like many other columnists, I've probably carried on too long with the same old photo.

Byline: 
Bruce W. Radford
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People

UTC, The Telecommunications Association, appointed William R. Moroney its executive director. He replaces Mike Meehan, UTC's executive director since 1988. Moroney previously served as president and CEO of the Multimedia Telecommunications Association.

LG&E Energy Corp. named Frederick James Newton III senior vice president of human resources and administration. Previously, Newton was senior vice president of human resources for Woolworth Corp.'s Champs Sports Division.

Commissioner Heather F. Hunt has resigned from the Maine Public Utilities Commission.

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Mail

TEXAS CLARIFICATION. Thank you for the article, "From Statehouse to Your House: The Electric Competition Debate in Texas" (May 15, 1998 issue).

Please allow me to correct one point in that article, however. In discussing variations of distribution costs among utilities serving "deep East" Texas (a region of the state), the author believed me to be referring to Deep East Texas Electric Coop (a utility). Deep East Texas Electric Coop has one of the lowest distribution costs in the state; other neighboring coops in "deep East" Texas are somewhat higher.

Byline: 
Pat Wood III
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Mail

PYRAMIDS FALL. While I enjoyed reading the "Pyramid Schemes" article in your May 1, 1998 issue, as the lead prosecutor in the Federal Trade Commission's action against FutureNet I feel a clarification is in order. While the FTC's complaint focused on FutureNet's Internet access program, certain concerns attach to any program which focuses on recruitment since one of the hallmarks of a pyramid is the lack of any relationship between the compensation paid to a distributor for recruiting and the sale of any product. (Webster v. Omnitrition International Inc., 79 F. 3d 776, 781 [9th Cir.

Byline: 
John Andrew Singer
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