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Fortnightly Magazine - May 1 1996

Purchased Power Contracts: Marrying Production and Financial Efficiencies

Electric utilities incur indirect financial costs when they turn to unregulated generators (NUGs) to buy power. These indirect costs can lead to lower bond ratings and undermine competitive advantage, depending upon the type of contract.

In this case we analyzed the combined effects of NUG power purchases on generating and capital costs for a representative utility (Utility A) with a relatively large amount of NUG purchased power.

Byline: 
Gary W. Dorris and Timothy Mount
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FERC Scrutinizes Hydro Preference Sales

The Federal Energy Regulatory Commission (FERC) has set for hearing a complaint by the Municipal Electric Utilities Association of New York (MEUA) against one of its members (the Town of Massena) and the New York Power Authority (NYPA). The complaint alleges that NYPA improperly agreed to sell low-cost hydroelectric power to an industrial customer, violating the Niagara Redevelopment Act as well as a FERC license assigning statutory preference to municipal utilities (Docket No.

Byline: 
Lori A. Burkhart
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Frontlines

A few weeks ago I picked up a copy of one of those law firm newsletters, this one published quarterly by Reid & Priest, titled the Utility Telecommunications Advisor.

Byline: 
Bruce W. Radford
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Mojave Cancels Troubled Northward Expansion

Although the Federal Energy Regulatory Commission (FERC) issued a December 1995 order (Docket No. CP93-258-007) giving Mojave Pipeline Co. a green light to expand into California, the planned Northward Expansion Facilities have been tabled. The reason: A three-year delay caused by jurisdictional disputes between the FERC and the California Public Utilities Commission, as well as problems involving the FERC's contract-demand reduction policy, caused Mojave to lose its projected customer base.

Byline: 
Lori A. Burkhart
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