Whether you're a utility commissioner in Wyoming or Georgia, a v.p. for a leading marketer, or a commission division director in New Jersey, you share a common activity: learning by the seat of your pants about deregulating gas markets. In this gas forum, PUBLIC UTILITIES FORTNIGHTLY highlights developments across the nation.
Fortnightly Magazine - October 15 1996
Sec. O'Leary says "strategic alignment" is trimming the budget;
GAO remains unsure whether Department is "truly committed."
Department of Energy (DOE) officials and like-minded politicians joined to defend the agency against Senate and House bills that would dismantle the department (em and its $17-billion annual price tag.
On September 4, the Senate Committee on Energy and Natural Resources conducted hearings on S. 1678, The Department of Energy Abolishment Act.
The Idaho Public Utilities Commission (PUC) has ruled that the leasing of "dark" optical fibers in telecommunications cable facilities owned by Idaho Power Co.
Monopoly rents? Not in the short run. The real enemy is a price war, fueled by indifference to stranded costs. And when that happens, antitrust laws won't offer much help.Competition has formally begun in the electric service industry. The Federal Energy Regulatory Commission (FERC) has issued Order 888, giving generators access to wholesale loads throughout the nation.
The Interstate Natural Gas Association of America (INGAA) has released a background report from its rate and policy analysis department that compares natural gas and electric restructuring costs. INGAA feels the gas industry experience offers lessons for federal and state regulators as they debate potential stranded costs from electric industry restructuring.
INGAA notes that the interstate pipelines had to adopt open access and provide their customers with choices before their stranded-cost liabilities were settled.
The Maine Pubic Utilities Commission (PUC) has allowed Central Maine Power Co. to boost rates by 1.26 percent under an alternative rate plan approved in late 1994. The increase is based in part on an indicated inflation rate of 2.55 percent for the last quarter of 1996.
The PUC found considerable disagreement on whether the rates proposed by the utility would capture the full benefits from restructuring a number of the utility's purchased-power contracts with qualifying cogeneration facilities (QFs).
By Robert J. Michaels
The Justice Department's Guidelines don't tell us very much about
today's (or tomorrow's) electric market.
However many electric utilities remain after this merger wave, competition will be forever changed.
PECO Energy Co. has filed its "Open Market Plan" at the Federal Energy Regulatory Commission (FERC) for restructuring the Pennsylvania-New Jersey-Maryland (PJM) power pool. PECO is the only member not joining a majority PJM restructuring order filed July 24 with the FERC.
The plan proposes an independent system operator (ISO) and electric transmission service priced on a regional, postage-stamp basis. The wholesale market would be based on bilateral transactions, with a residual pool for hourly energy.
The Ohio Supreme Court has cleared the way for state regulators to review a complaint by Cleveland Electric Illuminating Co. that American Electric Power (AEP), a utility holding company, used one of its electric generating subsidiaries, Ohio Power Co., as a "straw man" to circumvent the state's utility service territory laws and serve one of its retail customers.
Antitrust is not another form of regulation. Antitrust
is an alternative to regulation
and, where feasible, a better alternative.
(em Stephen G. Breyer,
"Antitrust, Deregulation, and the Newly Liberated Marketplace,"
75 Calif. Law Rev. 1005, 1007 (1987).