Fortnightly Magazine - October 15 1998

MARKING THE FIRST CASE of a voluntary agreement in a region not previously organized as a tight power pool, or compelled to act by state legislation, a group of 10 operating electric utilities won approval from the Federal Energy Regulatory Commission on September 16 to form the Midwest Independent Transmission System Operator, Inc., which will take over operational control of certain defined jurisdictional transmission facilities, provided that it complies with conditions imposed by the FERC.

ONE OF THE thorniest issues that the Federal Energy Regulatory Commission has had to deal with in recent years is defining the scope of its jurisdiction over pipelines on the Outer Continental Shelf. Yet the solution is relatively simple and straightforward.

Fueled by the volatile combination of perceived statutory ambiguity and significant financial gains to pipeline owners, who can convince the Commission that their currently regulated facilities are in fact beyond its jurisdiction, the OCS controversy has raged for years.

According to a telephone survey commissioned by the National Council on Competition and the Electric Industry, consumers are happy with their electric suppliers, but want the companies to improve their environmental records.

Many of the 1,307 adults surveyed also would like to see electricity prices improved. Two-thirds, in fact, think prices are too high.

Nearly all consumers (96 percent) feel it's important that electric companies be environmentally responsible. Some 92 percent say that preserving the environment is important, even if it costs more.

The California Power Exchange doesn't solicit separate bids for plant start-up, spinning reserve or base load operation. That can make spark spreads a bit misleading

IT SHOULD COME AS NO SURPRICE THAT THE PROSPECT OF electric competition has created a huge demand for price forecasting services. To their credit, the forecasters have obliged, supplying an abundance of tools and techniques. Do the forecasts serve the needs of those who would use them?

Some might wish to use a price forecast to assign a value to assets.