By Robert J. Michaels
The Justice Department's Guidelines don't tell us very much about
today's (or tomorrow's) electric market.
However many electric utilities remain after this merger wave, competition will be forever changed.
PECO Energy Co. has filed its "Open Market Plan" at the Federal Energy Regulatory Commission (FERC) for restructuring the Pennsylvania-New Jersey-Maryland (PJM) power pool. PECO is the only member not joining a majority PJM restructuring order filed July 24 with the FERC.
The plan proposes an independent system operator (ISO) and electric transmission service priced on a regional, postage-stamp basis. The wholesale market would be based on bilateral transactions, with a residual pool for hourly energy.
The Ohio Supreme Court has cleared the way for state regulators to review a complaint by Cleveland Electric Illuminating Co. that American Electric Power (AEP), a utility holding company, used one of its electric generating subsidiaries, Ohio Power Co., as a "straw man" to circumvent the state's utility service territory laws and serve one of its retail customers.
Antitrust is not another form of regulation. Antitrust
is an alternative to regulation
and, where feasible, a better alternative.
(em Stephen G. Breyer,
"Antitrust, Deregulation, and the Newly Liberated Marketplace,"
75 Calif. Law Rev. 1005, 1007 (1987).
Sound bites from state and federal regulators.
Gas Competition. Indiana finds that competition in the gas industry has "not directly benefitted" residential and small commercial customers, in first annual report to legislature on energy policy. July 1, 1996 (Ind.U.R.C.).
Gas DSM. Idaho cites declining need for demand-side management in light of new appliance efficiency standards. Tells Intermountain Gas Co. to end water heater rebates. Case No. INT-G-96-4, Order No. 26546, Aug. 1, 1996 (Idaho P.U.C.).
Gas Price Forecasts.
The Maine Public Utilities Commission (PUC) has decided to forgo a formal price-cap plan for Bangor Hydro-Electric Co. (BHE), an electric utility, finding that traditional regulation would better maintain the proper balance of shareholder and ratepayer interests. The PUC had approved a price-cap mechanism for Central Maine Power Co., another of the state's investor-owned electric utilities (see, Re Central Maine Power Co. 159 PUR4th 209 (Me.P.U.C.
One thing that adds some fun to my job (notice, I did not say that my job is fun) is the chance to compare similarities between the gas and electric markets.
The California Public Utilities Commission (CPUC) has authorized Pacific Gas and Electric Co., Southern California Edison Co., and San Diego Gas and Electric Co. to guarantee notes totaling $250 million for loans to two trust funds to support the development of computer hardware and software for the state's proposed independent system operator (ISO) and power exchange (WEPEX), but commissioner Jesse J. Knight has dissented, worrying about cost control.
As noted in a parallel story ("PUC Loans Would Bolster ISO, Power Exchange," Headlines, p.
The Virginia State Corporation Commission has authorized Virginia Electric and Power Co. to suspend a pilot program for its Standby Generation Control System. (For prior ruling approving the program, see Re Virginia Electric Power Co., 162 PUR4th 363 (Va.S.C.C. 1995).)
The approved pilot authorized the utility to install control equipment on a mixture of customer- and utility-owned generators. Virginia Power would then operate the control system to provide extra generation during peak.
Christopher M. Coburn and Charles William Burton were confirmed by the U.S. Senate as directors of the U.S. Enrichment Corp. Both will serve five-year terms. Coburn is v.p. of the Technology Partnership Practice for Battelle Memorial Institute. Burton, an attorney, is of counsel to Jones, Day, Reavis & Pogue.
Northern Indiana Public Service Co. promoted Dorothy M. Hawkins to information technology director. Kennan J. Walsh, senior rate specialist, was promoted to senior (electric) regulatory specialist. Gregory A.
