Fortnightly Magazine - August 2007

California vs. Oregon

An expiring 40-year-old contract rocks the Pacific AC Intertie.

PacifiCorp informed FERC, PG&E, and the state of California that it would not renew the contract upon its long-anticipated expiration date of July 31, 2007. Instead, it would take back full ownership of its transmission-line rights and sell the available capacity into the open market under its own tariff at today’s going rate.

Energy Reform: A Legislative Washout?

Congress is shifting U.S. energy policies toward green alternatives. Is the new direction temporary or permanent?

Fundamental questions about fuel supply, efficiency standards, and environmental performance have splintered Republicans and Democrats into warring factions. As a result, the only proposals legislators can agree upon seem to be watered down half-measures.

Cyber Standards: FERC Asserts Its Authority

NERC’s first critical-infrastructure standard is now enforceable. But cyber rules await approval.

Cyber standards proposed by the North American Electric Reliability Corp. are in limbo this summer, although the Federal Energy Regulatory Commission anticipates taking action on them soon. Once approved, however, how will the two organizations work together to enforce compliance?

Transmission Line-Siting Under EPACT: Shortcut or Short Circuit?

The 2005 Act, designed to streamline projects, may fall short of that goal.

The Energy Policy Act of 2005 was supposed to streamline the siting process and provide a federal “trump card” for projects delayed at the local level, but it is far from clear whether these goals have been, or will be, achieved.

Another Side to Decoupling: Share the Gain, Not the Pain

The New Jersey Board of Public Utilities finds incentive programs may be a better way.

New Jersey regulators say they have found a way to achieve conservation objectives while maintaining efficient operations, all without placing additional risk on consumers. How did they do it?

ISO/RTO Markets: Building a Common IT Platform

Independent system operators and regional transmission organizations recognize the value in having a common IT architecture.

In today’s modern business environment, standards for products and services have become common—and expected—practice. The time is right for creating a common language among the critical software tools needed to deliver a reliable, competitively priced supply of electricity through today’s integrated power grids and wholesale market structures.

Kelliher's "Believe It or Not!"

FERC attempts to reform competitive markets.

The fact that FERC actually released an advance notice of proposed rulemaking in late June, on competitive markets of all subjects, has many in disbelief.

People

(August 2007) Atmos Energy Corp. announced that John Paris has assumed duties as president of the company’s Mid-Tex Division. ISO New England Inc. elected two new board members: Roberta S. Brown, president of Sassafras River Associates LLC, and Richard E. Kessel, president and CEO of Environmental Power Corp.The board of directors of Public Service Enterprise Group named Richard J. Swift as its presiding director. And others...

When Two Worlds Collide

Energy guru Joseph A. Stanislaw explains how the battle between government and the marketplace is changing.

It is a debate that rages to this day: whether rate-based regulation (government) or electric competition (marketplace) is a more effective model for the utilities industry and world economies. Joseph Stanislaw gives us a uniquely authoritative view on this perennial question.

Asian Electric Competition Custom Tailored For Success

Taking the anti-FERC approach to the grid.

A common response to energy-market risk is a complex market infrastructure, with significant administrative effort and cost dedicated to managing the risks and ensuring that the market functions in a transparent and effective manner. But is market complexity a necessary byproduct of competitive markets?

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