Fortnightly Magazine - October 1 1996

Joules

The U.S. Department of Energy (DOE), in a report analyzing the July power outage in

14 Western states, notes that New England is "challenged" by the shutdown of 3,000 Mw of nuclear capacity in Connecticut. The mid-Atlantic will be likewise challenged over the coming years by delay in the construction of a 765,000-volt transmission line between West Virginia and Virginia.

UtiliCorp United amended an electric-supply contract with Public Service Co. of Colorado to reduce electric costs for 78,000 electric customers by as much as $1 million a year.

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Maine Drafts Restructuring Plan

The Maine Public Utilities Commission (PUC) has released for comment its Draft Plan on Electric Industry Restructuring, which would allow all retail customers to choose their generation supplier beginning in January 2000. The draft permits customers to aggregate, and does not require reciprocity based on retail access in other states or Canada.

Investor-owned utilities (IOUs) would have to structurally separate generation by January 2000, and divest all generation assets by January 2006.

Byline: 
Lori A. Burkhart
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New Estimates of Nuclear Stranding

R.J. Rudden Associates, Inc. (RJRA) estimates U.S. nuclear plant stranded costs at $65.5 billion ($1994) if electric industry restructuring is fully implemented in 1997.

The firm's analysis relied on historic cost and performance data for each facility, and on RJRA projections of regional competitive prices for capacity and energy. RJRA said a slower restructuring would reduce the investment at risk to between $46.3 billion (year 2000) and $23.2 billion (year 2010).

Byline: 
Lori A. Burkhart
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Natural Gas Combo to Serve One Million

Atmos Energy Corp. and United Cities Gas Co. have announced an agreement to merge in a share-for-share exchange of common stock.

Atmos distributes natural gas to about 673,000 customers through its operating subsidiaries, Energas Co., Greeley Gas Co., Trans Louisiana Gas Co., and Western Kentucky Gas Co. United Cities distributes gas to about 310,000 customers, operates gas storage facilities, and distributes propane to 25,000 customers.

Byline: 
Lori A. Burkhart
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Fitch Evaluates NY's Electric Future

Citing the ongoing Competitive Opportunities Proceeding as well as recent public statements by New York Public Service Commission (PSC) chairman John O'Mara, Fitch Investors' Service predicts that New York will aggressively approach electric industry restructuring.

Fitch believes electric utility bondholders could be adversely affected by PSC policies that order less than full stranded-cost compensation, establish penalties to force disaggregation, or provide bailouts that transform weak companies into strong competitors.

Byline: 
Lori A. Burkhart
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SoCalGas Arques Over Fuel Charge

Southern California Gas Co. (SoCalGas) has taken issue with the coal industry's opinion that lower electric rates from restructuring would increase electricity use, and that strict environmental regulations would require meeting the increased demand with out-of-state generation.

"These coal industry groups suggest that electricity demand will rise because cheap coal-fired electric power (em generated in Arizona and elsewhere (em will now be available," said Lee Stewart, a SoCalGas senior vice president.

Byline: 
Lori A. Burkhart
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