Sound bites from state and federal regulators.
Electric Briefs
Environmental Review. California halts work on report of environmental impacts of electric restructuring and new market structure, finding no need for independent review of commission proposals after state Legislature had sanctioned "a more competitive scheme" last summer when it passed Assembly Bill 1890. R.94-04-031, I.94-04-032, Decision 96-12-075, Dec. 12, 1996 (Cal.P.U.C.).
Electric Restructuring.
Finding that Alabama Power Co. has a clear need for additional capacity in the near future (em reserves for the year 1999 will drop to approximately 9.2 percent (em the Alabama Public Service Commission has authorized the utility to pursue a utility-owned cogeneration project as the least-cost resource option.
The company plans to install a natural gas-fired cogeneration plant at an industrial facility owned by one of its larger customers. The utility will own, design, maintain and operate the
100-MW facility.
The Idaho Public Utilities Commission has allowed Idaho Power Co. to terminate an "industrial efficiency" conservation program designed to promote the installation of energy efficient equipment by both industrial and large commercial users through the use of grants awarded by the utility.
The commission found that the way to implement such goals is changing in light of electric industry restructuring, while declaring its continuing support for utility investment in conservation and renewable-based resources.
The Minnesota Public Utilities Commission has adopted a schedule of environmental costs for electric utilities evaluating and selecting resource options in all commission proceedings including resource-plan and certificate-of-need cases.
In each such case the utilities will be required to provide three cost analyses for each generation-option provided: one using the values at the low end of the range (see table), one using values at the high end of the range, and one reflecting "direct costs only" (i.e., using zero environmental externalities values).
Table.
The 9th U.S. Circuit Court of Appeals has ruled that Portland General Electric Co., could not invoke "state action immunity" as protection against antitrust charges in a case involving the division of the Portland, Ore., market into exclusive service territories.
Columbia Steel Casting Co., a large industrial consumer of electric power in the city, had sued Portland General and another local utility, Pacific Power & Light Co., charging both companies with dividing the city's electric users among them in violation of federal antitrust laws.
Concerned that competition in the natural gas market might affect reliability of gas supply for core customers, the New York Public Service Commission has adopted new short-term curtailment procedures for the states natural gas local distribution companies.
According to the commission, the new procedures "recognize the restructured natural gas industry," and require that in the event of short-term interruptions or force majeure curtailment situations, the needs of core customers are met first.
A New York supreme court (Albany county) has affirmed a May 1996 order by state public service commission to restructure the state's electric utility industry, upholding PSC's "flexible retail poolco" model and authority to direct utilities to file plans for further review.
The court ruled that the PSC may deregulate generation and compel separation of generation, wires, and energy marketing functions. Moreover, the PSC need not guarantee 100-percent recovery of stranded costs, says court, but may "encourage" utilities to divest themselves of generating assets.
A control area is like an airport (em too many planes, not enough runways.
SAN FRANCISCO, CALIFORNIA, AUGUST 21, 1996 - 8:35 A.M.
On Saturday, Aug. 10, 1996, a power outage left more than 4 million Californians without electricity, prompting the California Public Utilities Commission to conduct emergency hearings. Witnesses appeared from electric utilities and a host of federal and state agencies, including the Bonneville Power Administration, the U.S. Department of Energy, the Federal Energy Regulatory Commission and the Western Systems Coordinating Council.
Testifying before the New Hampshire Public
Utilities Commission, the CFO of Northeast Utilities, John H. Forsgren, warned that a proposed electric deregulation plan could push subsidiaries Public Service Co. of New Hampshire, and North Atlantic Energy Corp. into bankruptcy.
Consulting company LaCapra Associates gave its deregulation report and recommendations on Jan. 3 to the PUC. The Jan. 20 hearing was aimed at examining stranded costs, and what portion of its $800 million stranded costs PSNH would be allowed to recover.
Myth 1. RTP increases the utility's costs and revenue requirements. %n1%n
Reality 1. A well-conceived RTP program reduces the utility's costs and revenue requirements.
RTP programs can reduce peak demands for power, increase off-peak demands, and reduce the need for additional peak-load capacity. This increase in efficiency can lead both to higher company profits and greater customer savings. As the electric industry becomes more competitive, these savings will flow to those customers most responsible for lowering the utility's costs.
