Calendar of Events

Oct 20, 2014 to Oct 23, 2014 | Orlando, FL
Oct 27, 2014 to Oct 31, 2014 | Clearwater Beach, FL
Nov 05, 2014 to Nov 06, 2014 | Las Vegas, Nevada

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Public Utilities Reports

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N.Y. Restructures Gas Rates to Lure Competitive Supplies

Phillip S. Cross

The New York Public Service Commission has directed Consolidated Edison Co. to modify its gas transportation rates to more accurately reflect costs.

The commission said that the tariff revisions mark a "major step" for a service territory where competition between the utility and gas marketers had not yet developed.

Pipeline Customers To Get Storage Gas at Cost

Phillip S. Cross

The U.S. Court of Appeals for the District of Columbia Circuit has upheld a ruling by the Federal Energy Regulatory Commission requiring an interstate pipeline company to sell excess low-cost storage gas supplies to its sales customers at cost, on the theory that ratepayers who bear risk for losses in industry restructuring should retain gains from the same process.

The pipeline, Williston Basin Interstate Pipeline Co., had found that excess gas was available after it had cut sales operations as part of the market restructuring ordered by the FERC.

In Brief...

Sound bites from state and federal regulators.

Refusal to Wheel. Federal judge allows rural electric co-op to proceed with antitrust suit against PacifiCorp, ruling that doctrine of state action immunity does not insulate a regulated investor-owned electric utility from antitrust action for allegedly refusing to sell to sell power to others for resale to customers, or for allegedly refusing to wheel power generated by other suppliers.

FERC Deals with Vertical Market Power in Mergers

Lori A. Burkhart

In two separate cases, the Federal Energy Regulatory Commission for the first time has approved an analytical framework for examining vertical market power concerns raised by convergence mergers of gas and electric companies. This new framework applies when market power in one sector (such as natural gas) threatens competition in another (e.g., electricity).

In the first case, the FERC on June 25 conditionally approved the disposition of jurisdictional facilities in the proposed merger of two holding companies, Enova Corp.

Joules

Bay State Gas Co. has sold its 17.5-percent equity interest in the Masspower cogeneration plant to Energy Investors Fund Group. The sale price wasn't released; Bay State said it was more than book value. The 240-megawatt, gas-fired combined-cycle plant provides steam for Monsanto Co.

Bridgeport, Conn., is the planned site of a $260-million, 520-MW power plant. Duke Energy Power Services, United Illuminating Co. and Siemens Power Ventures signed a letter of intent to build the gas-fired, combined-cycle merchant plant.

Perspective

Albert J. Budney, Jr.

Canadian markets beckon U.S. utilities, and vice versa, demanding greater access to transmission lines to bridge the gap.

When I took the job of president of Niagara Mohawk Power Corp., way up North, near the Canadian border, I shared the news with a close friend. I told him how excited I was to be joining an innovative team that was out in front, breaking new ground in the competitive arenas rapidly evolving in the electric power industry.

Michigan Competition Plan Meets Opposition

Lori A. Burkhart, and Phillip S. Cross

Putting aside calls for a faster-paced switch to the new industry format, the Michigan Public Service Commission has adopted a phase-in schedule for customer direct access to alternative electricity suppliers that runs through 2002. The order, which some have said needs additional work, also outlines stranded cost recovery policies and related securitization strategies.

Under the plan, 2.5 percent of each electric utility's retail load will become eligible for customer choice each year from 1997 through 2001, with all customers eligible in 2002.

Joules

MCN Investment Corp. and Tennessee Gas Pipeline Co. plan to build a $45-million liquified natural gas plant near the Delaware-Maryland border. The project, named Continental States Peaking Services L.L.C., would liquify, store and vaporize gas beginning in early 2000. It would connect to the Eastern Shore Natural Gas pipeline system, with access to the Transcontinental Gas Pipe Line and Columbia Gas Transmission system.

In Brief...

Sound bites from state and federal regulators.

Appliance Repair Business. Responding to complaints from unregulated providers, New York rules that natural gas LDCs must run their appliance repair services through a separate subsidiary. PSC terms its existing policies "anachronistic" and finds that subsidies for appliance repair services are inappropriate. Case 93-G-0804, April 4, 1997 (N.Y.P.S.C.).

DSM Program Design. Michigan appeals court says state PSC exceeded authority and "impermissibly interfered with management decisions" of Detroit Edison Co.

FERC Issues Certificates for Two New Gas Pipelines

Lori A. Burkhart

The Federal Energy Regulatory Commission has granted two certificates for natural gas pipeline projects in the Southeastern U.S. One certificate went to Southern Natural Gas Co. for construction of a controversial pipeline to serve two municipal customers; a second was issued to Columbia Gas Transmission Corp. for the largest single expansion of its pipeline and storage system.

The FERC on May 28 voted 5-0 to grant a certificate to Southern Natural Gas Co. to construct approximately 118 miles of natural gas pipeline to serve two municipal customers.

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