The Future of the Local Gas Distributor
In less than a decade, three powerful trends will converge on gas distributors.
Fortnightly Magazine - February 1 1995
Pool Adds Transmission Distance Rate
The Federal Energy Regulatory Commission (FERC) has amended the Mid-Continent Area Power Pool (MAPP) agreement, adding a distance-based transmission service charge for short-term transmission services provided by MAPP members (Docket No. ER94-1529-000). Previously, MAPP members provided reciprocal short-term transmission services to each other, charging only for transmission losses.
MAPP wants to apply a distance-based transmission charge for wholesale coordination transactions of four years or less between pool members.
Byline:
Lori A. Burkhart
Ohio Proposes Emission Allowance Regs
The Ohio Public Utilities Commission (PUC) has proposed regulations to allow electric utilities to use fuel-cost clauses to recover gains or losses from trading Clean Air Act emission allowances. The PUC emphasized that utilities should use the allowance market to maximize trading while making the use of coal produced in the state part of a least-cost power-supply strategy. Re Amendment of Chapter 4901:1-11 of the Ohio Administrative Code, Case No. 94-1792-EL-ORD, Nov. 23, 1994 (Ohio P.U.C.).
In a separate case, the PUC ruled that Dayton Power & Light Co.
Byline:
Phillip S. Cross
Power Marketers: Let's Make a Deal
SIDE SUBHEAD
Everyone talks about them.
Byline:
By W. Lynn Garner
EPA Approves Alternative-Fueled Vehicle Program
The Environmental Protection Agency (EPA) has approved a plan by 12 northeastern states and the District of Columbia (the Ozone Transport Commission (OTC)) to improve air quality under the Clean Air Act. The plan allows the OTC to establish an alternative-fuel vehicle program fashioned after California's, beginning in model year 1999, or to choose other measures that would provide equivalent pollution reductions. The OTC plan envisions the sale of certain advanced technology vehicles that reduce pollution by more than 70 percent.
Byline:
Lori A. Burkhart
Entering the Appliance Repair BusinessGordon Canning
Nearly 40 utilities now offer an appliance services program. Most take a similar approach: They cover appliances such as gas and water heaters, offer repair service only (no preventive maintenance), and charge a modest price ($50 to $60 per year). Bill inserts often carry the load for service promotion.
Byline:
Gordon Canning
FERC Allows "Retroactive" Rates
The Federal Energy Regulatory Commission (FERC) has approved a settlement permitting potential refunds or surcharges by New England Power Co. (NEP) and Northeast Utilities Service Co. (NU) on deferred rate issues relating to transmission services provided on facilities collectively known as the "New Hampshire corridor" (Docket Nos. ER92-764-000 and ER92-766-000).
When NU merged with Public Service Co. of New Hampshire (PSNH), the FERC authorized PSNH to dispose of its jurisdictional facilities.
Byline:
Lori A. Burkhart
Forecasting New Gas Users
(SIDE SUBHEAD)
Each year hundreds of oil or electric customers call Boston Gas to ask about fuel-switching. What do they look for?A gas utility can boost sales only one way-by gaining new customers. And in today's slowly growing economy, conservation trends limit growth opportunities. The average household today uses two-thirds the energy of 15 years ago.
Byline:
Alexander Lonshteyn
Financial News
SIDE SUBHEAD
With no need for new capital, utilities have lost political pressure, exposing the regulatory compact as an illusion.Recovery of stranded investment today marks the central issue in the debate over electric utility competition. Unfortunately, the utility argument in favor of recovery is flawed.
Byline:
Charles M. Studness
Cost of Service Ignores Load Factor
In his recent article, "Cost-of-Service Studies: Do They Really Tell Us Who's Subsidizing Who?" (Nov. 15, 1994), Mark Quinlan proposes an alternative cost-of-service methodology. He claims that under current cost-allocation methods (and given adequate capacity to meet demand) a rate class with increasing sales subsidizes a rate class with decreasing sales.
Byline:
Jim Lundrigan