Genco Risk: "Location, Location, Location"Vinod Dar's recent article, "Competition, Convergence . . . and Cashflow? The Power Business in the Next 20 Years" (Apr. 1, 1996, p. 31), highlighted some of the risks inherent in investments in new power generation plants in a restructured electric industry.
Fortnightly Magazine - May 15 1996
The New York Public Service Commission (PSC) has decided to review its experimental "Open Market Plan" to introduce competition to the local telephone market in the Rochester, NY area.
The Montana Public Service Commission (PSC) has authorized Montana Power Co. (a combined electric and natural gas utility), to increase base rates for gas distribution by $3.01 million, subject to refund.
The New York Public Service Commission (PSC) on March 14 approved utility restructuring plans aimed at opening up the local natural gas markets to competition. Residential, small business, and commercial/industrial gas users now may purchase their gas supplies from a variety of sources, just as larger industrial customers may purchase from sources other than the local utility (Docket No.
The Rhode Island Public Utilities Commission (PUC) has approved a plan by which shareholders of Providence Gas Co., a natural gas local distribution company (LDC), will fund existing low-income assistance programs. The PUC approved the plan as part of settlement agreement in a case involving a new integrated resource plan (IRP) for the LDC.
Funds for the low-income assistance programs will come from gas-cost savings earned by the LDC under new performance-based IRP reforms approved by the PUC.
The Reason Foundation, a public policy research organization, has issued a report, Federal Power: The Case For Privatizing Electricity, recommending privatization of the Tennessee Valley Authority (TVA) and the five power marketing administrations (PMAs).
The Michigan Public Service Commission (PSC) has approved a request for certification of plans by CMS Generation Co., a wholly owned subsidiary of CMS Energy Co., to acquire an interest in an electric power supplier in Australia, as part of that country's privatization program.
According to CMS Generation, the project will remain a "totally separate entity" from the corporate parent and its principal subsidiary, Consumers Power Co.
Pennsylvania Power Co. (PP) has asked the Pennsylvania Public Utilities Commission (PUC) to approve a 10-year "Rate Stability and Economic Development Plan," which includes a freeze on electric rates until May 1, 2006; enhanced customer assistance programs; rate incentives; and reduction of fixed costs and regulatory assets.
Rates would not be affected by future PP decisions on new generating capacity, removing or retiring generating facilities from service, or bulk-power purchases.
The Nova Scotia Utility and Review Board has directed Nova Scotia Power Inc., an electric utility, to design and submit time-of-day (TOD) rates based on energy costs for all classes of customers except residential users. At the same time it denied a call for less emphasis on resource planning, and disallowed half the costs incurred for an executive compensation incentive program.
The Board rejected a proposal by the utility to redesign rates to reflect time of use by implementing seasonal rates, using on-peak demand levels for billing purposes.