The New Mexico Public Utility Commission has authorized Public Service Company of New Mexico to launch a major new program to help small-volume end users take advantage of alternate gas supply sources.
The action follows an investigation by the commission of an offer by the utility to exit the gas merchant function.
Under the new program, small customers can purchase gas from a list of qualified marketers beginning with the first billing cycle for December 1997.
Competition draws Christians, conspiracy theorists.
SO, WHO WANTS TO COMPETE AGAINST THE LOCAL UTILITIES? In most of the country, potential competitors tend to fall into three categories: (1) traditional utilities from within or nearby the affected state that wants to expand into foreign service territories; (2) unregulated subsidiaries of traditional utilities; or (3) power marketers and/or aggregators. In California, however, it's more of a mixed bag.
A talk with two LDCs. First, PSE&G appears content to cede sales to marketers, Second, NW Natural intends not to give in just yet.
This much is clear: Energy utilities are headed for an unbundled future.
As states from both sides of the country implement residential and commercial natural gas unbundling, require residential choice pilot programs and grapple with electric industry restructuring, competition shows no signs of slowing. To boot, some members of Congress seem eager to give competition a national push.
When the fanfare dies down, winners face the same challenge as with any new start-up but may enjoy more options than incumbent licensees.
The Federal Communications Commission's auctions of spectrum should concern two types of energy utilities: those who participate in the auctions and those who don't.
Initially, these auctions were viewed as a spectacular new regulatory tool (em able to raise billions of dollars for the public, without troubling the overburdened taxpayer. As of late, however, a dark side has emerged. Bidders have cried fraud.
(And why power plant buyers may follow suit.)
"WINNERS' CURSE" IS IMPORTANT TO THE UTILITY ASSET AUCTIONS. Winners' Curse is the tendency for the "rookies" and the wide-eyed visionaries to overbid in auctions with uncertain valuations.
The spectrum auctions at the Federal Communications Commission reveal the Winners' Curse even in the more "successful" rounds, despite the agency's elaborate precautions.
FCC's 14 spectrum auctions booked almost $23 billion in license fees (em almost $10 billion in broadband personal communications services (PCS).
THE FERC TAKES SUGGESTIONS ON THE FUTURE OF THE GAS INDUSTRY.
Earlier this year, the Federal Energy Regulatory Commission opened a discussion of issues facing the natural gas industry. Its aim? To set "regulatory goals and priorities" for the era following from Order 636, issued in 1992. %n1%n
To gather input, the FERC scheduled a two-day public conference. It asked for comments on a myriad of topics, ranging from cost-of-service rates to hourly gas pricing and services.
Throughout the 1990s, investor-owned utilities have redefined the way they do business to position themselves for competition better. The downside of these efforts is higher rates for small customers and employee layoffs.
Today, IOUs are more focused on improved efficiency. IOUs are concentrating on keeping large customers, investing less in their utility systems and retiring debt.
Though IOUs continue to dominate electric generation nationwide (74 percent), electric output has increased by only 8.1 percent since 1990.
Let me tell a story. A consultant I know works as the lead negotiator for a Native American tribe that sells fuel to electric generating plants. On occasion he visits the reservation to discuss business plans with the tribe, exploring various scenarios for utility restructuring.
Recently, this consultant said he found himself in the ceremonial council lodge, instructing tribal leaders on decision trees and discounted cash flows. When he finished, the younger members conferred briefly in their native language.
The board of the California ISO selected Jeffrey D. Tranen as its first CEO. Tranen is former president of the New England Power Co., senior v.p. of the New England Electric System and chair of NEPOOL. The ISO starts operation Jan. 1, 1998.
Charles F. Gay, Ph.D., former director of the DOE's National Renewable Energy Laboratory, was hired as president and CEO of ASE Americas Inc. Klaus Albrecht, former president and CEO, will serve on ASE's board and as senior v.p.-business development.
A $35 million, 45-mile Texas-to-Mexico natural gas pipeline is set to be ready by mid-December. With a capacity of 212 MMBtu/d, the 24-inch diameter pipeline will supply the 700-megawatt Samalayuca I and II power plants, set partially to open in 1998. El Paso Natural Gas Co. and El Paso International Co. are partnered with Pemex Gas Y Petroquimica Basica in the 50-50 joint venture.
El Paso International also has signed a joint development pact with Furnas Centrais Eletricas S.A., BHP of Brazil Energy, Centrais Electricas Brasileiras S.A., and British Gas of Brazil.