Federal Energy Regulatory Commission (FERC)

Mid-American Energy Co., Illinois Power Co., Wisconsin Power & Light Co., Western Resources, Inc., IES Utilities, and Commonwealth Electric Co.

"We consider this a success story," said FERC chair Elizabeth A. Moler. "While we still have a long way to go, this is real progress.

The Federal Energy Regulatory Commission (FERC) has rejected a proposed amendment to the NEPOOL agreement that would have 1) facilitated negotiation of energy-only transactions by and among pool members, and 2) eliminated an otherwise applicable rate discount for transmitting energy involved in certain of those sales (Docket No. ER95-1466-000).A key aspect of NEPOOL operations is sharing of reserves. Each member is assigned a capacity responsibility equal to its load plus a share of the pool's combined reserve requirement.

The Federal Energy Regulatory Commission (FERC) has approved a comprehensive settlement for Southern Natural Gas Co. (SNG), resolving the company's costs associated with its transition to Order 636. The settlement resolves

23 rate cases, reduces rates, and provides about

$146 million in customer refunds (Docket No. RP89-224-000, et al.). Protesting parties have been severed from the case.

The refunds, plus $9.1 million contributed by SNG, will serve as a credit toward customers' liability for SNG's cost of realigning gas supplies under Order 636.

State and federal regulators and the industries we regulate have donned life jackets. It's as if we are boating down the unexplored Grand Canyon with John Wesley Powell1 in 1869. We share a vague vision of what lies at the mouth of the canyon, but the rapids are treacherous and uncharted.

On the river, boatmen and women often scout the tough rapids from the shore. Back on the river, they carefully set themselves up at the proper position and angle, then apply deft, sometimes powerful, strokes at crucial moments.

The Federal Energy Regulatory Commission (FERC) has set for hearing a request by Koch Gateway Pipeline Co. (KGP) to charge market-based rates for firm and interruptible natural gas transportation services (Docket No. RP95-362-000). First, however, the FERC must conclude Docket No. RM95-6-000, which will delineate the circumstances under which it may approve market-based rates.

The Federal Energy Regulatory Commission (FERC) has conditionally approved an open-access transmission tariff that contains a price cap in the secondary market for Kansas City Power & Light Co. (KCPL), marking the second settlement of a comparability tariff filing (Docket Nos. ER94-1045-000 et al.).

The Federal Energy Regulatory Commission (FERC) plans to investigate the membership requirements set by the Mid-Continent Area Power Pool (MAPP), especially as they pertain to power marketers (Docket Nos. ER94-1529-001 and 002, and EL95-77-000).

The FERC found last December that certain MAPP membership criteria are framed in terms of traditional utility attributes (em e.g., ownership of generation and transmission facilities, interconnected operation, system load and related reserve obligations (em that entities such as power marketers do not possess.

The Federal Energy Regulatory Commission (FERC) has set for hearing a request by Koch Gateway Pipeline Co. (KGP) to charge market-based rates for firm and interruptible natural gas transportation services (Docket No. RP95-362-000). First, however, the FERC must conclude Docket No. RM95-6-000, which will delineate the circumstances under which it may approve market-based rates.

Electric industry restructuring is progressing at a rapid pace. Across the country, states are moving ahead to encourage retail competition. Two states have allowed retail wheeling experiments (Michigan and New Hampshire), utilities are proposing them, and over 20 states are studying the issue. Back in Washington, Congress is examining legislation to amend the Public Utility Holding Company Act (PUHCA).

The California Memorandum of Understanding (MOU) is an agreement between Southern California Edison Co. (SCE), the California Manufacturers' Association, the California Large Energy Consumers' Association, and the Independent Energy Producers. It tackles three major issues:s recovery of stranded assets

s market power

s market structure.

If the MOU is eventually endorsed, it might be a landmark in electric restructuring \(em and not only in California.