Lori A. Burkhart, Phillip S. Cross and Beth Lewis
MIDWEST POWER PRICES. Federal Energy Regulatory Commission Chairman James Hoecker announced July 15 that as soon as the staff presents its findings, the FERC will deal with the complaints filed by Cinergy, Steel Dynamics Inc., and others asking for regulatory relief from the late June run-up in Midwest bulk power prices (as high as $7,500 per megawatt-hour), and for a price cap set at $100/MWh. Nevertheless, Hoecker advised that the FERC was in "no hurry," and that the remedies available to it were not entirely clear. Docket No. EL98-53 (Cinergy), filed June 29, 1998; Docket No.
CANADA MAY CLAIM ONLY A SMALL SHARE OF THE world's high-profile power developers, but that hasn't stopped its financial institutions from becoming big players. These public and private lenders have made available billions of dollars to nearly any project willing to use Canadian consultants or equipment.
Furthermore, the government is willing to back its country's products with political risk insurance as part of the package. In a world where power projects are becoming expensive and pose greater market and political risk, Canadian involvement is welcomed.
A FREQUENTLY ASKED QUESTION UNDER CALIFORNIA's NEW electricity framework is, "Where have all the suppliers gone?" At a recent industry symposium, one large customer noted during negotiations with competitive energy suppliers that all five finalists had disappeared. The experience at my firm has been so draconian, but I have found that it is not unusual for half of the finalists to disappear in the bargaining. And when I say "disappear," I'm talking about something more extreme than simply reaching an irreconcilable difference.
Gary M. Becker
THERE'S A STORM coming. This tempest threatens to inundate management and shred shareholder value. It can't be avoided, only survived. Only those who batten down the hatches will survive.
The issue is nuclear plant decommissioning. While many would prefer to comfort themselves that the dark clouds on the horizon are still far off, trouble may come sooner than they think.
Of the 106 operating plants in the United States, more than half were licensed before 1978. Of the plants that have shut down so far, not one has reached the expiration of its license period.
Lori A. Burkhart, Phillip S. Cross and Beth Lewis
ENERGY SUPPORT SERVICES. An Illinois appeals court affirmed a 1997 decision by the state commission that had denied authority to Commonwealth Edison to offer "energy support services," such as design, engineering, construction, analysis and management of electrical power equipment and energy systems. The court made this decision despite the utility's argument that no evidence existed to support the commission's finding that ComEd enjoyed a monopolist's advantage over competitors.
ENTERGY Power Group named Charles J. Brown III group president of development. Previously, Brown was responsible for Entergy's European project development.
Shahid J. Malik was promoted from senior vice president and COO to president and CEO of Entergy Power Marketing Corp. Malik joined the company in February 1997.
Ameren Energy, Ameren Corp.'s new independent energy marketing and trading affiliate, named Shannon B. Burchett president. Burchett previously served as senior vice president of marketing with Duke/Louis Dreyfus.
Lori A. Burkhart, and Phillip S. Cross
POWER PLANT SALE. Central Maine Power Co. has agreed to
sell its hydroelectric, fossil and biomass power plants totaling 1,185-MW of generating capacity to FPL Group, the holding company of Florida Power and Light. The sale price of $846 million exceeds book value and could permit up to a 10-percent rate cut for customers by the end of the year.
OHIO/TEXAS DEAL. Ohio-based American Electric Power
Co. and Texas-based Central and South West Corp. on Dec.
Ralph D. Masiello
YEAR 2000. MILLENNIUM. DEREGULATION. Each word strikes fear into the heart of meter manufacturers and utilities alike. Like the turning of the century, deregulation is coming for the electric utility industry, and sooner than we think. How will it affect the metering industry?
The first real indication can be found in California. There, by order of the state public utilities commission, the customer's energy supplier (the energy service provider or the utility distribution company) will, for the time being, own the meter.
Phillip S. Cross
THE RECENT INCREASE IN MERGER ACTIVITY IN THE energy and telecommunications industries has concerned state regulators for some time. Such concern reveals how the practical or "local" aspects of business deals often clash with broader national issues reviewed by federal authorities in merger cases.
In electric utility mergers, for instance, the Federal Energy Regulatory Commission will address effects on competition, rates and regulation.
Joseph F. Schuler, Jr.
WHAT IS A SCHEDULING COORDINATOR?
At least 33 organizations know the answer to that question in California because by late last year that's how many SCs had filed to act as go-betweens to the independent system operator.
Although the definition varies depending on who's asked, an SC is simply a preschedule and dispatch office. An SC puts a power schedule together for itself or for energy service providers a day ahead or hour ahead.