Fortnightly Magazine - January 1 1996

Embedded Cost Pricing: What Fairness Demands

As the generation side of the electric industry becomes increasingly deregulated and transmission migrates toward common carrier status, an easily administered and fairly applied pricing system must be developed. The concepts of "postage stamp" tariffs and "contract paths" lose all logical viability. They possess no totally encompassing tie between the provider of the service and the revenues for that service.

FERC Puts EBB Onus on Gas Industry

The Federal Energy Regulatory Commission has issued an advance notice of proposed rulemaking on "Standards of Communication Among Natural Gas Pipeline Companies and their Customers" (Docket No. RM96-1-000). At the same time, Commissioner James J. Hoecker urged the natural gas industry to continue its voluntary efforts to develop standards for electronic bulletin boards (EBBs). Commissioner Vicky A. Bailey agreed that the gas industry should take the lead, but warned that it has only a limited window of opportunity before the FERC takes over. Commissioner Donald F. Santa, Jr.

Incremental-Cost Pricing: What Efficiency Requires

In thinking about transmission pricing for a competitive electric industry, we should remember that the fundamental objective of competition is to increase economic efficiency. Improved economic efficiency, after all, leads to better use of resources, lower costs, and long-term benefits for consumers.

Coalition Seeks DOE Action on Nuclear Waste

The U.S. Department of Energy (DOE) has settled its lawsuit with the State of Idaho, clearing the way to resume shipments of radioactive waste from Navy ships to a DOE storage site in Idaho. DOE will pay Idaho $350 million and has promised to remove the Navy's spent fuel from the Idaho storage site by 2035 or face a $60,000-a-day penalty.

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