FERC

It's as significant for what it does not do as for what it does.

Order 888 marks a significant, yet limited, step in deregulating the U.S. electricity supply industry. Most important, for utility shareholders, the Federal Energy Regulatory Commission (FERC) has now apparently established a right to recover costs prudently incurred under the old regulatory compact (if not contract) that may become stranded by the Order. But (em and this is an important but (em the FERC is not going to hand out the money easily.

The search for cheaper electricity is in full swing, from the East Coast to the West.

Orange and Rockland Utilities, Inc. of Pearl River, NY, proposes that 1,500 residential customers, along with industrial and commercial businesses, be allowed to pick their electric power supplier. The proposal, called "PowerPick," has been endorsed by New York Public Service Commission staff, the Industrial Energy Users Association, and the state Consumer Protection Board.

Three separate utilities have formed subsidiaries:

s The Columbia Gas System, Inc.'s new unit, Columbia Service Partners, Inc. will market new, nongas needs to homeowners and businesses, including warranty, fuel management, and gas-line repair services.

s Brooklyn Union's new gas marketing affiliate, KeySpan Energy Services, Inc., will buy and sell gas and provide transportation and related services, first to commercial and industrial customers, then to aggregated commercial and residential customers.

or Power Markets?

In their article, "Curbing Market Power: The Larger the Better" (Apr. 15, 1996, p. 10), Christopher D. Seiple and Douglas M. Logan show that market-share indices can be derived from commercially available databases. The authors reference their soon-to-be-released study, U.S. Electric Utility Industry Mergers and Acquisitions, as a source for further market-power assessments.

The topic is timely. The U.S.

At the end of May, Consumers Power Co. issued a press release that caught my eye. In four short paragraphs, the company said it had filed an application with the state public service commission (PSC) seeking approval of a private power-supply contract with James River Corp. Consumers Power ranks James River as its 23rd largest industrial electric customer.

APPA Director Alan Richardson will fight

toe-to-toe with well-heeled

adversaries. If he were a boxer, his name might be Alan "The Right" Richardson.

The executive director of the American Public Power Association (APPA) always toes the canvas, swinging for equity for his 1,750 members, shadowing its "heavyweight" adversaries, investor-owned electric utilities (IOUs).

The Federal Energy Regulatory Commission (FERC) generally has denied rehearing of its comprehensive September 29 rate order concerning Southern Natural Gas Co. (SNG). The order settled 23 rate cases, resolved the company's costs associated with the transition to Order 636, and refunded about $150 million to customers. Last September, FERC chair Elizabeth A.

The three largest California investor-owned utilities (IOUs) (em Pacific Gas and Electric Co., San Diego Gas & Electric Co. (SDGE), and Southern California Edison Co. (SCE) have circulated for comment working drafts of future Federal Energy Regulatory Commission (FERC) filings concerning a deregulated electricity industry.

One 150-page proposal asks that operational dispatch control of transmission facilities be conveyed to an ISO, beginning January 1, 1998.

I confess. I haven't yet read the Federal Energy Regulatory Commission's Order 888.

Dwindling economic competitiveness has plagued the nuclear power industry for

some years. In the industry's early years, some reactors were completed for less than $100 million. Experience gained overseas (often in projects with American partners) provides sobering evidence that nuclear reactors can still be built at low cost in short periods of time.