Some shareholders do find bottom-line value
in a "marriage of convenience."
With six merger and acquisition (M&A) deals announced between May 1995 and January 1996, and three more so far this year, the long-predicted consolidation of the electric utility industry is taking hold. At least 23 utilities, with business-combination transactions pending, are part of the frenetic domestic M&A activity that has swept the industry.
The Washington Utilities and Transportation Commission (UTC) has approved a settlement agreement allowing Cascade Natural Gas Corp. (CNG) to increase its rates by $3.8 million a year starting August 1, 1996.
CNG will also hike its monthly service charge to residential, commercial, and core industrial customers by $1 on August 1, 1997, and by another $1 on August 1, 1998. The utility says the revenue increase would be offset by concurrent decreases in rates for transportation customers.
The Maine Public Utilities Commission (PUC) has rejected a request by Central Maine Power Co. to suspend a proceeding to develop an interim competition transition charge.
But which one?
And how to adjust for different delivery points?FOR THE PAST 20 YEARS, THE WESTERN
Systems Coordinating Council (WSCC) has built a reputation for innovation in electric markets.
To what extent should the independent system operator (ISO) and the spot market (Power Exchange) remain separate? Thinking about how the ISO must operate leads to certain conclusions.
Of necessity, the ISO will operate a noncontract market. That is, the ISO will match some supply and some demand that are not covered by generator-customer contracts.
Light-handed or Light-headed?Customers didn't buy power on lay-away. So why should the CPUC exact interest?
In a recent dream, the Governor of California called to ask if I would accept an appointment to serve on the California Public Utilities Commission (CPUC). Of course I thanked him and said I was extremely flattered by the offer. However, I inquired, didn't he have an opening on the parole board or air resources board? You see, I know entirely too much about the thankless work of the CPUC.
not a grab for power.
The jurisdictional issues posed by Order 888 continue to breed tension between federal and state officials. Unfortunately, most of this tension too often elevates form over substance. This jurisdictional tension shifts the focus of decisionmaking from securing the benefits of competition to preserving regulatory turf.
The Federal Energy Regulatory Commission (FERC) has issued two orders that indicate for the first time how it would implement the prohibition against "sham" transactions under the Energy Policy Act. The separate decisions involve requests by two municipalities for orders requiring utilities to wheel power.
In one order, the FERC denied a request by the City of Palm Springs, CA, for electric transmission service from Southern California Edison (SCE) under sections 211 and 212 of the Federal Power Act (FPA) (Docket No. TX96-7-000).
Labor Day found me trudging around in one of those "big box" discount stores, looking for a sale on a new refrigerator. Out West, California lawmakers spent the holiday putting together their own discount plan (em this one promising rate cuts for the state's residential electric consumers, funded by "rate reduction bonds" backed by a state-owned bank for economic development.
Either way you cut it, the holiday proved worthy of its name.
The Federal Energy Regulatory Commission (FERC) announced that qualifying facilities (QFs) that fail to meet the standards needed to retain QF status will be required to file wholesale rates for sales during the period their facilities do not comply (Docket Nos. EL94-45-001 and QF88-84-006).
The FERC asked QFs to be as vigilant as possible. The new policy states that if a QF fails to comply with the regulations, fails to receive a FERC waiver excusing the lapse, and then returns to noncompliance, the QF will be required to file rates for the noncompliance period.
