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Fortnightly Magazine - April 1 1995

Perspective

We stand on the threshold of a new era in the electric services industry. I deliberately avoid the term "electric utility industry," because the future is not limited to the vertically integrated monopoly utility. Many utilities may already perceive the first cracks in their armor: nonutility generators (NUGs), self-generators, and energy service companies.

Competition is not in the industry's future; it is here now. Further, competition and market forces are not going to magically disappear.

Byline: 
Patricia M. Eckhert
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Telecom Reform: New Congress, New Bill

Here we go again. Last year, the 103rd Congress failed to pass the much-promised and highly touted telecommunications reform legislation aimed at bringing the antiquated Communications Act of 1934 into the 21st century. Now it's up to the 104th Congress, and both parties have draft legislation ready to go.

In February, Sen.

Byline: 
Lori A. Burkhart
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Louisville G&E Settles on Comparability

Louisville Gas and Electric Co. (LG&E) has filed a settlement offer on comparability of electric transmission, the result of negotiations with Federal Energy Regulatory Commission (FERC) staff since November. The first of its kind filed at the FERC, the settlement forms part of LG&E's comparable transmission service case, which involves the utility's network and point-to-point tariffs.

Byline: 
Lori A. Burkhart
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The Growing Strategic Role of Fuels

The advent of a competitive electric utility industry will fundamentally change the role of fuels in the industry. The fact that fuel is the dominant variable cost in power generation will reverse the relationship between the fuels and power production functions in many companies. Only plants that are competitive will operate; only operating plants will produce revenues.

Byline: 
Jeffrey P. Price
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FERC Investigates Gas Transportation Pricing

The Federal Energy Regulatory Commission (FERC) has asked for comments on alternatives to traditional cost-of-service pricing for interstate natural gas pipeline transportation rates (Docket No. RM95-6-000). In response to many requests from pipeline companies to approve rates based on other pricing methods, some cost-based and some not, the FERC wants to develop a framework for analyzing alternative proposals.

Byline: 
Lori A. Burkhart
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Rethinking the Secondary Market for Natural Gas Transportation

This year the Federal Energy Regulatory Commission (FERC) plans to examine the resale of firm natural gas transportation rights, often referred to as the secondary market. The current regulatory structure, which provides for "capacity release" through an electronic bulletin board (EBB), was born in November 1993. How would this secondary market behave under different regulatory or market assumptions?

Byline: 
Ronald C. Denhardt
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Marketers Demand Generic Comparability

Six major independent power marketers, calling themselves the Coalition for a Competitive Electric Market, have asked the Federal Energy Regulatory Commission (FERC) to begin broad-based, competitive reforms of the nation's electric service industry by winter 1996-97. Ultimately, they want the FERC to force all electric utilities that own transmission wires to allow marketers and other transmission-dependent power sellers and buyers to use their lines on a comparable basis.

Byline: 
Lori A. Burkhart
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Natural Gas Pipelines: Roadmap to Reform

Gas pipeline reform is looming on the horizon like the stealth bomber. It faded from view a couple years ago, when the Federal Energy Regulatory Commission (FERC) completed Order 636 and turned to electric issues. Yet gas reforms are more pressing: They began earlier, their direction is clearer, and their completion is closer at hand. In fact, without a more price-responsive market for gas transportation, we cannot fashion an efficient and integrated energy industry.

Byline: 
Frank A. Felder and Scott T. Jones
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Dam Removal Policy Carved in Stone

The Federal Energy Regulatory Commission (FERC) has refused to reconsider its December 14, 1994, policy statement on hydroelectric plant decommissioning. That policy upholds the FERC's authority to deny new project licenses when existing licenses expire and to order owners to remove a dam during the relicensing process (Docket Nos. RM93-23-000, RM93-23-001). Commissioner James J.

Byline: 
Lori A. Burkhart
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