CMS Electric & Gas Co. named Frank Johnson vice president of international electric and gas distribution. He previously was the company's vice president of energy distribution.
J. Kay Smith was appointed vice president of corporate communications and public policy at Ameren Corp. Smith was promoted from assistant to the president for AmerenCIPS and manager of government affairs for Ameren Services.
Duke Energy International appointed David Weaver executive vice president for Europe.
State PUCs
Distributed Generation. California opened a rulemaking proceeding to consider regulatory reforms in electricity distribution service, with a possible focus on distributed generation. The commission emphasized that its intent was not to define new policies, but to gather information. Comments are due March 17, and the commission intends to consider a proposal from the assigned commissioner this summer. Rulemaking 98-12-015, Dec. 17, 1998 (Calif. P.U.C.).
Gas Transportation Rates.
Albert V. Ruggiero was elected vice president for South Jersey Industries Inc. Ruggiero also serves as senior vice president, corporate development for SJI's principal subsidiary, South Jersey Gas Co.
The Bonneville Power Administration announced four new senior vice president positions. Harvey Spigal will return to general counsel after heading BPA's transmission functions for the past two years. BPA's corporate group will be headed by Steve Wright. Paul Norman was named permanent head of the power business line. Mark Maher will head the transmission business line on an acting basis.
A tale of three deals - ADT, Westinghouse, KCPL - at Western Resources.
Sensing changes in the utility industry, Western Resources Inc. in 1994 began to examine what it was and what it needed to be - to customers, to investors and to other constituencies. Through an extended exercise in strategic planning, we produced a rather typical end product: a document outlining a hypothetical future of growth, financial strength and customer satisfaction.
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.
Federal Agencies
NOX EMISSIONS. Generating heavy criticism from industry, on September 24 the Environmental Protection Agency released its long-awaited final rules on nitrogen oxide emissions, outlining a plan to reduce NOx by 28 percent by year 2007 in some 22 states and the District of Columbia, with state implementation plans due by September 1999 and controls in place by 2003, to be carried out through a "cap and trade" program to buy and sell NOx emissions credits.
ELECTRIC POWER SYSTEMS ARE HEAVILY DEPENDENT ON computers and communications. The electric power industry is reputed to be the third largest user of computers and communications, behind government and the banking industry. When regulators and legislators make decisions regarding the electric power industry, their decisions often carry implications for the industry's computer systems. However, it is rare for these implications to attract significant consideration or influence in the deliberative process.
FERC
GAS PIPELINES. Noting a move toward shorter-term contracts since Order 636, the FERC on July 29 issued an "integrated package" of reform proposals for the natural gas pipeline industry: (1) specific measures in a notice of proposed rulemaking on short-term transportation (transactions shorter than one year); plus (2) an open-ended request for comments in a broader notice of inquiry. RM98-10-000, 84 FERC ¶61,985 [NOPR]; RM98- 12-000, 84FERC ¶61,087 NOI].
Efforts to make generation competitive have induced several electric utilities to sell their power plants. Some sales are voluntary. Some are forced by rules mandating functional segregation from transmission and distribution. Of those sales announced or completed, most have involved high-cost utilities, and all have garnered at least book value, suggesting an attempt by sellers to deal with stranded costs.
Why then, are buyers willing to pay more than book value? They must believe they can improve on cash flows - either by raising revenues, trimming costs, or both.
FERC
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.