Flexibility

Evidence suggests a decision point at 6 cents per kWh, indicating that self-generation becomes a highly viable option at that price

WHAT ROLE SHOULD REAL-TIME PRICING play in a deregulated electricity market? Can it serve as an incentive to induce customers to remain loyal to their power supplier? How do customers respond to price changes carried out under RTP tariffs?

Real-time pricing programs are now being used as a proxy for market-based pricing.

LAST YEAR, IN JUSTIFYING THE PROPOSED NEW NATIONAL AMBIENT Air Quality Standards (NAAQS) for particulate matter and ozone, Environmental Protection Agency Administrator Carol Browner testified that: "During the 1990 debates on the Clean Air Act's acid rain program, industry initially projected the costs of an emission allowance¼ to be approximately $1,500¼ Today those allowances are selling for less than $100." %n1%n

Later in 1997, at the White House briefing announcing President Clinton's Global Climate Change Plan, Katie McGinty, chairwoman of the Council on Environmental Quality, sa

THE U.S. TREASURY DEPARTMENT HAS ISSUED RULES that will allow all public power systems to participate in independent system operators without risk of losing the tax-exempt status of their bonds.

Investor-owned utilities are not happy. According to the Edison Electric Institute, the regulations significantly expand the ability of large government-owned electric utilities to use federal subsidies to compete against private utilities.

Meanwhile, the American Public Power Association is pleased that the rules passed Jan.

AFTER A FOUR-YEAR DEBATE ON ELECTRICITY REFORM, CALIfornia's powerful industry players have carved out a unique and broad new role for "scheduling coordinators." SCs have the central role in offering fully unbundled generation, transmission and retail-access services. But could these SCs, by controlling the market, also become the new monopolists?

California's highly complex scheme for markets, while said to be laissez faire, maintains several artificial constraints and market protocols that create advantages for SCs.

Nearly a year and a half after passage of the federal Telecommunications Act of 1996, real competition has yet to emerge in Indiana in local telephone markets, according to a report issued by the Indiana Regulatory Commission.

Nevertheless, the U.R.C. says it anticipates making competitive choices available to local consumers in the coming months.

Three weeks ago I traveled to Indianapolis to Speak at the Indiana Energy Conference, a meeting sponsored by the Citizens Action Coalition and a board group from the local gas and electric industries, including a fair number of state government employees. Focusing on issues largely specific to Indiana, that audience gave the meeting a novel perspective: What's a low-cost state to do?

Do you fix it if it ain't broke?

Gas restructuring didn't end with Order 636, it just outran the regulators. Now the rules come from the downstream dealmakers.

Filings Against FERC's Pro Forma Tariffs

AS ONE MIGHT EXPECT, THE VARIATIONS REFLECT THE HISTORIC TENSION BETWEEN NATIVE LOAD AND WHOLESALE TRANSACTIONS.

Competition from Order 636 has gas customers rethinking their firm capacity options.

Just when everyone thought we had put Order 636 behind us, up pops perhaps our greatest challenge yet: the turnback (or "decontracting") of firm capacity on interstate natural gas pipelines. This phenomenon, now emerging on a few major pipelines, such as Transwestern, El Paso, and Natural Gas Pipeline Co. of America, inspires different reactions.