News Digest

 

Frontlines

Pancakes for Breakfast?

Two new transcos wake up to a stack of protests.

With the first deadline only a month away, electric utilities have launched trial balloons before filing plans at the Federal Energy Regulatory Commission for regional transmission organizations (RTOs).

Agency moves ahead despite ruling that Clean Air Act is unconstitutional.

By granting petitions filed by four Northeastern states seeking to reduce ozone pollution in their geographic areas through reductions in nitrogen oxide emission (NOx) from out-of-state sources, along with other initiatives, the Environmental Protection Agency on Dec. 17 began to clean the regulatory air that has grown murky as of late.

Transco law opens the door to munis and co-ops.

As the electric industry awaits a final rule from the Federal Energy Regulatory Commission on regional transmission organizations, Wisconsin has moved to create its own stand-alone transmission company, or transco.

In the process, Wisconsin will allow grid-dependent utilities to get a piece of the action.

The Legislation. On Oct. 27, Wisconsin Gov. Tommy Thompson signed Assembly Bill 133, an omnibus budget bill that incorporated original Assembly Bill 389.

State PUCs

Gas Capacity Rights. The New York PSC told retail suppliers that to serve firm retail gas load they must have rights to firm, non-recallable, primary delivery point pipeline capacity for the five winter months, November through March, or else must augment secondary capacity with a standby charge payable to local distribution companies holding primary rights.

Studies and Reports

Natural Gas Retail Choice. Utility affiliates hold large market shares in natural gas customer choice programs, raising questions about the extent of true competition, according to a study released on Dec. 15 by the U.S. General Accounting Office. Participation varies by region, however, according to the report, "Energy Deregulation - Status of Natural Gas Customer Choice Programs."

In Pennsylvania, for example, three out of four programs showed very high shares for utility affiliates. The Equitable Gas Co.

Tales of bad faith, cold feet and price manipulation.

Lollipops"/fn1/ and "loopholes." "Islands" and "peninsulas." Utilities have invented a colorful new lexicon to explain what's happening at power pools and regional transmission groups. Yet the basic issue remains familiar: How to gain a competitive advantage.