Four years ago, Congress made its wishes known: it tabbed the National Institute of Standards and Technology to develop a set of standards for the smart grid, and then instructed FERC, the Federal Energy Regulatory Commission “adopt” those standards, but only after finding a ”sufficient consensus,” and only “as may be necessary” to assure “functionality and interoperability.” Yet what is known is not necessarily clear. Who decides if consensus prevails? What does “interoperability” mean? Should FERC’s “necessary” finding extend to retail smart grid applications, arguably outside its purview? And the biggest dispute — must standards be mandatory? — finds PJM at odds with much of the utility industry.

A motley assortment of naysayers and recalcitrants continue to oppose competitive electricity markets around the world. But the alternative to markets is centralized command economics—a discredited concept that deserves to be consigned to the dustbin of history.

Frontlines

Transmission on Trial?

 

 

 

News Digest

 

I know what you are thinking. We're in an age of deregulation, so the role of the state public utility commission is diminishing. You feel you can cut back on your regulatory affairs staff and concentrate on your business - on your marketing plan. Well, think again.

"Deregulation" doesn't quite describe what's happening today in energy and telecommunications. In reality, we are restructuring, not deregulating. And restructuring will raise a number of difficult issues that, like it or not, must survive review by your friendly state regulator.

Cinergy Corp. named Sherrie N. Rutherford vice president of special projects for Cinergy Services Inc. Rutherford formerly served as vice president and general counsel for the pipeline group and trading operations, and associate general counsel for Reliant Energy Wholesale Group.

Philip R. Sharp, a former Indiana Congressman, will serve as advisor on consumer choice and energy deregulation at Columbia Energy Group. Sharp is a lecturer in public policy at Harvard University's John F. Kennedy School of Government and a member of the U.S. Secretary of Energy's Advisory Board.

MARKING THE FIRST CASE of a voluntary agreement in a region not previously organized as a tight power pool, or compelled to act by state legislation, a group of 10 operating electric utilities won approval from the Federal Energy Regulatory Commission on September 16 to form the Midwest Independent Transmission System Operator, Inc., which will take over operational control of certain defined jurisdictional transmission facilities, provided that it complies with conditions imposed by the FERC.

But what of commissioners' aides and advisers? The people behind the scenes, who, in some cases, propose decisions for regulators to act on. What wisdom can commission aides share with the industry?

Further, are these posts proving grounds? Can we expect to see aides filling commission seats someday? Elizabeth A. Moler, deputy energy secretary, started as a Senate Energy Committee aide. James J. Hoecker, Federal Energy Regulatory Commission chairman, was once a FERC adviser.

Public Utilities Fortnightly spoke with five aides, whose average age is 37.

Carter T. Funk was promoted to v.p.-business and operations services at Consolidated Natural Gas Co. He moves up from v.p.-asset acquisition and resource development at CNG Energy Services.

Marian M. Davenport was promoted to v.p., general counsel, and secretary for Destec Energy, Inc. She replaces Stephen R. Wright, who retired.

Central and South West Corp. has elected Jim Ellis, chairman and CEO of SEEBOARD plc, to its board of directors.

Bunker Hill. Gettysburg. Pearl Harbor. Iwo Jima. The Cold War. Each of these famous conflicts resonates in our history books. Despite the end of the Cold War, we may face another battle, this time between the Federal Energy Regulatory Commission (FERC) and the states over jurisdiction.