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.
Carl J. Levesque
Rising projections, with few expenditures to date, paint an uncertain picture.
"In almost all cases, companies will have material events and changes requiring updated year 2000 disclosure in each quarterly and annual report filed with us."
That was the general mandate suggested by the Securities and Exchange Commission last summer in its interpretive release on the disclosure requirements for the Y2K issue.
Joseph F. Schuler, Jr.
Policymakers reflect on how it "coulda been." Nearly all insist "my state did it best."
California, Massachusetts, New Hampshire and Pennsylvania have deregulated their electricity markets. Yet they're all ironing out wrinkles. California at press time was bracing for a vote on the Proposition 9 recall petition. New Hampshire still faced federal lawsuits filed by Public Service of New Hampshire seeking to quash efforts to bring competition to the state. (See, U.S. District Court, Concord, Docket No. 97-97-JD; U.S. District Court, Providence, Docket No.
Lori A. Burkhart, Phillip S. Cross, and Beth Lewis
ISO GUIDELINES. Marking a contrast with California, but lining up with states in the Northeast, the Iowa Utilities Board has urged that independent system operators should have authority to order redispatch to help fulfill service requirements for electric transmission. That rule came as part of a set of principles issued by the board to guide the formation of ISOs in managing electric transmission systems and preventing the exercise of market power.
THERE MAY BE A LOT OF TALK IN THE ELECTRIC industry nowadays about creating a new identity to build name recognition, but residents in some parts of the country are seeing some old, familiar faces. Namely, Tom, Ben, Reddy and Willie.
For more than a decade, retired teacher Drew Wilson has taken on the persona of Thomas Alva Edison to represent Southern California Edison Co. at school assemblies, public exhibitions and fairs (see photo). Although he bears no relation to the inventor, Wilson is one of the best Edison impersonators, said SCE spokesman Charlie Basham.
Lori A. Burkhart, Phillip S. Cross and Beth Lewis
William Catacosinos has resigned as chairman of MarketSpan Corp., the utility formed to replace the troubled Long Island Lighting Co. Catacosinos is under investigation by the New York attorney general due to a $42-million severance payment as part of the buyout of LILCO by the New York government-run Long Island Power Authority (see Public Utilities Fortnightly, August 1998, p.28).
SCT Utility Systems Inc., signed a software and services agreement worth about $13 million with the city of Seattle for the BANNER Customer Management System.
THE BOARD OF DIRECTORS of Virginia Power elected James A. White to the position of senior vice president, human resources. White previously served as senior vice president, human resources for the investment management group of Cigna Corp. He will replace Tom O'Neil, who retires after a 33-year career with the company.
Sen. Frank Murkowski (R-Alaska) announced the appointment of Tina Kreisher as communications director of the Senate Committee on Energy and Natural Resources. Kreisher previously served as deputy director of the Washington d.c. office of Gov.
Wallace Edward Brand
WHY IS ELECTRICITY COMPETITION NOT WORKING? The principal reason is the failure of Order 888 to accommodate the economic and technological constraints of wholesale power markets.
Soon after Congress passed the Energy Policy Act of 1992, to give authority to the Federal Energy Regulatory Commission to compel electric utilities under its jurisdiction to wheel power for others, the FERC correctly recognized that piecemeal wheeling orders wouldn't work well without a tariff. A tariff would make the service quickly available to the user without the need for time-consuming negotiation.
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.
Lori A. Burkhart, Phillip S. Cross and Beth Lewis
TELEPHONE BILLING PRACTICES. Citing the filed-rate doctrine, which bars deviation from published tariffs, a federal appeals court affirmed the dismissal of two class action suits against AT&T Corp. that sought damages for alleged fraud. The suite arose from AT&T's failure to disclose to its residential long-distance telecommunications customers its practice of rounding charges up to the higher full minute.