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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Transmission

New York Finalizes ISO Proposal

Lori A. Burkhart

New York Power Authority trustees have approved agreements to help it establish an independent system operator for the statewide electric transmission system, which could be partially implemented in 1997, and fully implemented by mid-1998, if approved by the Federal Energy Regulatory Commission.

Members of the New York Power Pool, the authority and the state's seven investor-owned utilities have worked for nearly two years to develop a proposal for an independent system operator, or ISO. The proposal and associated tariffs were submitted to the FERC.

ISO Pricing: Let's Not Socialize Transmission Rates

Mark J. Vople

Flow-based pricing ends

subsidies inherent in grid-wide,

postage-stamp rates.

I

n Order 888, the Federal Energy Regulatory Commission suggested 11 principles for forming an independent system operator, or ISO. In its third principle, the FERC offered this guidance on transmission pricing:

An ISO should provide open access to the transmission system and all services under its control at non-pancaked rates pursuant to a single, unbundled, grid-wide tariff that applies to all eligible users in a non-discriminatory manner.

Power Pool Politics: How New England Agreed to an ISO

Gordon L. Weil

With its membership opened, NEPOOL sets a transmission tariff, but still must develop competitive markets. In 1993, after a series of attempts going back as far as 1971, the New England Power Pool failed to reach agreement among its members for a regional transmission arrangement. But destiny then took over (em with help from the newly enacted Energy Policy Act (em to lead pool members back to the bargaining table. Finally, on Sept. 30, 1996, NEPOOL announced that its executive committee had agreed in principle on restructuring the pool.

State Take Lead in Telecom Reform

Phillip S. Cross

A federal court blocks FCC's "TELRIC" cost rule, but some states endorse it anyway.

With the Federal Communications Commission (FCC) having lost a major court battle last fall, the state public utility commission (PUCs) have taken the lead in the deregulation of local telephone service promised a year ago when President Bill Clinton signed the Telecommunications Act of 1996 (the "Act").

Some states have opened generic investigations; others have chosen to proceed case-by-case in individual arbitration proceedings.

Special Report

Joseph F. Schuler, Jr.

Bonneville Power "Subscriptions" Seen Among Sticky Issues

A panel of governors in the Pacific Northwest expects to issue a plan this month that proposes a restructured Bonneville Power Administration, primed for the regional free-market electric economy.

The panel would act on a steering committee report that resolved pressing energy matters in the Northwest. But the committee report left open other issues that some say could leave the BPA's future in doubt.

Joules

Sears, Roebuck and Co. selected Enova Energy as a partner in a "regional energy alliance." Enova Energy, an Enova Corp. subsidiary, will design and install a technical learning center at Sears' Tucson, AZ department store. The company also will provide energy services at other Sears stores in several western states. The learning center will be one of a nationwide system of energy-efficient stores used as models and for the testing and training of facility operations equipment. All of the store's services will be aimed at improving energy efficiency and reducing costs.

People

Jay P. Lukens, formerly a principal at Energy Market Economics, Inc., was hired by The Economic Resource Group, Inc., as managing director and principal of the company's new Houston office.

Edison Source tapped Aram G. Sogomonian, a former executive at Enron Capital and Trade Resources as its new corporate risk management v.p. Sogomonian was Enron's director of risk analytics and asset price, and also has worked at Unocal.

Larry Grossman, a senior v.p. at Cassidy & Associates, was retained by the Council on Superconductivity for American Competitiveness as executive director.

Why Applicants Should Use Computer Stimulation Models to Comply With the FERC's New Merger Policy

Mark W. Frankena and John R. Morris

Models can overcome a key oversight (em

that both supply and demand affect competition.

This past December, the Federal Energy Regulatory Commission (FERC) issued a policy statement describing important changes in how it will evaluate proposed mergers under the Federal Power Act's public interest standard. These changes should lead to significant improvements (em not only in the evaluation of mergers, but also for other matters that affect market power, %n1%n including industry restructuring and market-based pricing.

What's New About the FERC's New Utility Merger Policy?

Marvin T. Griff

Applicants can only hope that a prompt review won't be even more difficult

By a unanimous vote, on December 18, 1996, the Federal Energy Regulatory Commission (FERC) issued Order No. 592, stating how it intends to evaluate utility mergers. The anticipation has ended, yet those hoping for a new approach and a quicker review are bound to be disappointed.

Order 592 is a "Policy Statement." As such, it only announces intentions; it imposes no new obligations and is not subject to judicial review until implemented in a specific case.

People

Peter R. Thomas was hired from Sprint as v.p. of American Electric Power's new communications subsidiary, AEP Communications, Inc.

Central Illinois Light Co. hired Todd Severson as human resources v.p. He comes from Remco, a subsidiary of Thorn Americas.

Scott A. Neitzel, a member of the Wisconsin Public Service Commission since January 1992, has resigned. Neitzel chaired the PSC's electric utility industry restructuring committee.

Ohio Edison Co.'s board of directors elected chairman and CEO Willard R. Holland as its chairman.

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