Calendar of Events

Jul 13, 2014 to Jul 16, 2014 | Dallas, TX
Aug 04, 2014 to Aug 15, 2014 | Michigan State University, East Lansing, MI
Aug 11, 2014 to Aug 12, 2014 | New York, NY

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Public Utilities Reports

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People

THE former chairman of the Missouri Public Service Commission, Karl Zobrist, is now a partner at Blackwell Sanders Matheny Weary & Lombardi LLP.

Zobrist resigned from the commission on Aug. 15, 1997.

Robert C. Kelly, former chairman and CEO of Enron Renewable Energy Corp., was named managing director of renewable energy for Enron International.

Steven J. Lewis joined AEP Energy Services Inc. as senior vice president of energy services. Previously, Lewis managed trading of natural gas and electricity for Duke/Louis Dreyfus LLC.

Michael P.

News Digest

Federal Agencies

Nuclear Plant Fines. The Nuclear Regulatory Commis-

sion has proposed fines totaling $2.1 million against Northeast Nuclear Energy Co. for many violations at the company's Millstone nuclear plant in Waterford, Conn. The fine marks the largest civil penalty ever proposed by the NRC. Northeast Utilities said it will pay the fine, which it called "a necessary and important step toward bringing to closure a very disappointing and difficult chapter in the company's history." The utility said it will not pass the cost onto ratepayers.

Electric Futures.

Integrating Metering & Information Systems

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.

Advertising & Branding: Are Utilities Getting It Right?

Lori M. Rodgers

IN THE EARLY 1970s, WHEN THE "ENERGY CRISIS" DAWNED, New York told electric utilities to stop advertising to promote electric use. State judges deemed such promotion as lacking in "any beneficial content," or even "detrimental to society." It took an appeal to the U.S. Supreme Court for utilities to win the right to tout their product.

Today's questions target the bottom line: Can advertising boost sales for energy suppliers? If so, what does it take?

News Digest

Lori A. Burkhart

MAINE YANKEE PRUDENCE. The Maine Public Utilities

Commission will investigate the prudence of Maine Yankee Atomic Power Co.'s decision to close its nuclear plant permanently.

The PUC said Oct. 22 that unrecovered investment in Maine Yankee combined with the loss in plant value could cause additional stranded assets for plant owners Central Maine Power Co., Bangor Hydro-Electric Co., and Maine Public Service Co. If imprudent action is found, the PUC said it would take steps to ensure that Maine's electric ratepayers do not bear any related costs.

Headlines

Lori A. Burkhart

PITTSBURGH CHALLENGES MERGER; ALLEGES COLLUSION

The city of Pittsburgh has filed an antitrust lawsuit against Allegheny Power Systems Inc., and Duquesne Light Co., to stop the merger proposed by the two companies.

In its Sept. 29 court filing, Pittsburgh claimed the two utilities acted jointly to restrain trade. The city said the companies did this by agreeing to maintain higher rates for electric retail service at two industrial sites targeted for redevelopment zones pending their merger.

PG&E's Rate Hike Request Shocks Consumer Group

Lori A. Burkhart

Pacific Gas and Electric Co.'s announcement that it wants to increase energy rates by almost $1.2 billion was met with outrage by consumer watchdog organization The Utility Reform Network.

Pacific Gas has notified the California Public Utilities Commission that it plans to file a 1999 general rate case to raise natural gas rates by $506 million to maintain gas pipeline safety and reliability. It also plans to increase electric base level rates by $703 million beginning Jan. 1, 1999 to improve service reliability.

Off Peak

Competition draws Christians, conspiracy theorists.

SO, WHO WANTS TO COMPETE AGAINST THE LOCAL UTILITIES? In most of the country, potential competitors tend to fall into three categories: (1) traditional utilities from within or nearby the affected state that wants to expand into foreign service territories; (2) unregulated subsidiaries of traditional utilities; or (3) power marketers and/or aggregators. In California, however, it's more of a mixed bag.

People

AT Washington Water Power, Bobby Schmidt was appointed director of the company, and Paul A. Redmond announced his retirement as chair and CEO. Redmond started with the company in 1965. Previously, Schmidt worked as an independent trader in Chicago.

MDU Resources Group Inc. has promoted Martin A. White from senior vice president, corporate development to president and CEO. White, who has been with the company since 1991, will replace retiring president H.J. Mellen Jr.

Robert L. Goocher was promoted to president of AGL Resources Service Co. from executive vice president and COO.

A West Coast View: The Case for Flow-Based Access Fees

Cliff Rochlin, and Roger Clayton

Divide the grid by usage (em local vs. regional. Apportion costs accordingly, to energy customers by fixed charge, and power producers by flow and distance.

Traditionally, utilities have received transmission costs through an average, rolled-in access fee, or postage-stamp approach. In a deregulated environment, that approach will lead to distorted pricing.

And not just because of transmission-line congestion.

Much of the current debate over electric transmission pricing has centered on the various competing methods of congestion pricing, such as zonal vs.

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