NARUC

Frontlines

Two months ago in this space, I interviewed a power marketer and an independent power producer who sit on the operating and engineering committees of the North American Electric Reliability Council. What did they think of NERC, a group formed to prevent large-scale power outages and made up largely of volunteers from investor-owned electric utilities? Were they treated fairly? Did they have a chance to influence policy?

In general, my two "outsiders" felt satisfied with their status on the committees, though some skepticism emerged about NERC's internal decision-making process.

People

Dennis L. Haider succeeded the retiring R.J. White as president of Prairielands Energy Marketing, Inc. Haider moved over from v.p.-operations for the Williston Basin Interstate Pipeline Co., another unit of MDU Resources Group Inc. Prairielands became a subsidiary of Williston Basin when Haider took over as president.

In a related development, Ronald G. Skarphol, a special projects manager of Montana-Dakota Utilities Co., takes White's place as v.p.-marketing and business development. Montana-Dakota is another MDU division.

Frontlines

Did you see Enron's new TV ad when it aired last month during the Super Bowl? What a dud. I had heard about Enron's big pitch (em in fact, I was watching carefully for the ad when, early during the first quarter, here comes this scene of an electric utility power plant control room with a hamster running in place on a wheel inside a cage, trying to reach a bottle of beer standing on a pedestal a few inches away.

Whoa now! Can this be true?

ISO Pricing: Let's Not Socialize Transmission Rates

Flow-based pricing ends

subsidies inherent in grid-wide,

postage-stamp rates.

I

n Order 888, the Federal Energy Regulatory Commission suggested 11 principles for forming an independent system operator, or ISO. In its third principle, the FERC offered this guidance on transmission pricing:

An ISO should provide open access to the transmission system and all services under its control at non-pancaked rates pursuant to a single, unbundled, grid-wide tariff that applies to all eligible users in a non-discriminatory manner.

Special Report

Talk runs gamut from "rocket docket" to "Just go slow." A merger announcement kickstarted NARUC's annual conference last year. This year, in San Francisco, there was little difference in conference chatter. Only this time, MCI Communications Corp. and British Telecommunications Plc were the suitors, in a $20 billion corporate marriage.

Regulators had better get used to the "M" word, noted speaker John E. Hayes, Jr., chairman of Western Resources Corp.

Frontlines

About a year ago I stuck my neck out to predict that electric utilities might end up with stranded investment in transmission lines. I suggested that financial commodities trading-longs, shorts, and hedges-might supplant physical product movements. It's happened in natural gas, where the interstate pipelines have suffered from "decontracting" and capacity "turnback"-a phenomenon that has tended to move from West to East.

1996 Regulators' Forum

As electric restructuring rockets to the top of state public utility commission agendas, regulators find themselves pushed in every direction. Pushing the hardest, in most cases, are legislators, who, like commissioners, are being lobbied by utilities, industrial consumers, and sometimes, residential customers. Each party has its agenda. Some wield more clout than others.

Public Utilities Fortnightly asked eight commissioners about the demands of restructuring and about an issue particular to their state.

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Comments by P.

People

SCANA Corp. promoted William B. Timmerman, president, to COO. John L. Skolds, senior v.p. of generation at SCANA subsidiary South Carolina Electric & Gas, became president and COO. Skolds replaces Bruce D. Kenyon, who left the company to become president of Northeast Nuclear Energy Co.

James T. Egler was promoted from president of Equitable Resources Inc.'s marketing division to CEO of Equitable Gas Co., a regulated subsidiary.

Transcontinental Gas Pipe Line Corp. promoted Bob Bahnick to v.p., operations & engineering.

People

Christopher M. Coburn and Charles William Burton were confirmed by the U.S. Senate as directors of the U.S. Enrichment Corp. Both will serve five-year terms. Coburn is v.p. of the Technology Partnership Practice for Battelle Memorial Institute. Burton, an attorney, is of counsel to Jones, Day, Reavis & Pogue.

Northern Indiana Public Service Co. promoted Dorothy M. Hawkins to information technology director. Kennan J. Walsh, senior rate specialist, was promoted to senior (electric) regulatory specialist. Gregory A.