Dean Maschoff, James Pardikes, David Thompson, Michael Rutkowski, and Nainish Gupta
Sales prices for power generation assets in the United States during the past two years have climbed to unprecedented levels. This trend should continue. More than 20,000 megawatts of generation assets have been sold, with another 20,000 MW announced. During the next five years, it is expected that 70,000 to 140,000 MW will change hands. We have seen only the beginning of a massive redistribution of generation assets - from regulated utilities to unregulated marketers and plant operators.
In fact, the prices we've seen for generation assets may turn out to be bargains.
Joseph F. Schuler, Jr.
Hoecker, Trebing see advantages in economies of scale.
Will New York's proposed independent system operator fall victim to the FERC's evolving RTO process?
"It has some conceivable drawbacks," FERC Chairman James J. Hoecker told attendees at the 30th Annual Institute of Public Utilities Conference. "One is that it's a single-state ISO and in the final analysis, regional transmission organizations probably need to cover broader geographical areas."
Hoecker used the forum at the Dec.
Robert J. Michaels and Jerry Ellig
The post-mortems on last summer's price spikes in the Midwest are in. At least three studies of the event diverge in their conclusions:
First, on Sept. 24 of last year, the staff of the Federal Energy Regulatory Commission found the root cause of the spikes in extreme weather and unexpected outages. It observed no direct evidence of market manipulation and concluded that the events were unlikely to recur.
Bruce W. Radford
Tales of bad faith, cold feet and price manipulation.
Lollipops"/fn1/ and "loopholes." "Islands" and "peninsulas." Utilities have invented a colorful new lexicon to explain what's happening at power pools and regional transmission groups. Yet the basic issue remains familiar: How to gain a competitive advantage.
DTE Energy Technologies named G. Paul Horst company president. Horst was founder and first chief executive officer of Nematron Corp. He pioneered the use of industrial computers to provide operator-to-machine interfaces similar to ATM machines. Since 1995, Horst has served as a director of Interface Systems and a consultant to DTE Energy.
Randy Hardy, former CEO and administrator of Bonneville Power Administration, has formed the Hardy Energy Consulting firm. Hardy will work with the Washington, D.C.
Lori M. Rodgers
THE TELECOMMUNICATIONS INDUSTRY HAS OVERtaken the sweepstakes industry for the dubious title as The Most Complained About Industry.
From January through June of this year, the National Fraud Information Center received 2,071 cramming reports, plus hundreds more calls from consumers with a cramming problem but not enough details for the NFIC to file a formal report. The Federal Trade Commission defines cramming as unexplained charges on a consumer's telephone bill for services never ordered, authorized, received or used.
THE OLD ADAGE ABOUT INNOVATION STILL HOLDS TRUE: "You can tell the pioneers by the arrows in their backs." More than 70 municipal utilities have either built or plan to build telecommunications systems with fiber-optic and coaxial cable to compete against local cable television, data communications or telephony providers. Profitability for these ventures has been abysmal, but their customers and regulators are happy. Now large, investor-owned electric utilities are stumbling down the same trail marked with cast-off bandages of these early pioneers.
Christine E. Platt and Jonathan W. Hurwitch
ACCORDING TO ONE RECENT SURVEY, MORE THAN HALF THE U.S. population now lives in states with customer choice. Moreover, industry executives expect 20 to 50 percent of these customers to choose a new electricity supplier by year end. %n1%n
With changes expected in the way electricity is generated, delivered and sold, exerting pressure on prices, what does the future hold for energy storage technologies?
After all, restructuring efforts appear most active in the highest-cost states -- those with average electricity prices running above 7 cents per kilowatt-hour.
Blair G. Sweezey, Ashley H. Houston and Kevin L. Porter
FOR THE FIRST TIME IN DECADES, A GROWING NUMBER of consumers are able to choose who supplies their electric power and, perhaps more importantly, where that power comes from. Evidence is mounting that this ability to exercise choice may give a long-needed shot in the arm to the deployment of renewable energy technologies.
National polls consistently reveal that between 40 and 70 percent of those sampled say they would pay a premium for environmental protection or for renewable energy, and utility company surveys reinforce those findings.
Lori A. Burkhart, Phillip S. Cross and Beth Lewis
Power Pools & Reliability
SUMMER IN WISCONSIN. Responding to concerns about the electric shortages of the summer of 1997 and fears that they could happen again, Wisconsin PSC Commissioner Joseph P. Mettner has indicated that the state's energy supply outlook for the summer of 1998 appears much better in eastern Wisconsin than it did one year ago.
Mettner noted that Wisconsin's electric supply system is operating with expected reserve margins of 19.2 percent. But he cautioned that electric power flows do not respect borders.