A 400-page report by Virginia State Corporation Commission staff concludes that Virginia's best interest will be served by a slow and carefully analyzed move toward electric utility competition, rather than by immediate, massive restructuring.
The California Public Utilities Commission (CPUC) has approved loan guarantees of up to $250 million to fund development of computer hardware and software to help the electric industry establish the independent system operator (ISO) and the Power Exchange (PX), both key components of the CPUC's proposed restructuring plan.
Pacific Gas & Electric Co. and Southern California Edison Co. each had asked for $112.5 million in loan guarantees; San Diego Gas & Electric Co. had asked for $25 million.
Ohio Edison Company and Centerior Energy Corp. announced an agreement September 17 on a tax-free, stock-for-stock merger to form a new holding company, FirstEnergy Corp., worth about $4.8 billion, based on stock prices that closed several days earlier.
The news came a month after two other merger deals were announced in mid-August: 1) Atlantic Energy, Inc. and Delmarva Power & Light Co. ($2.2 billion), and 2) Houston Industries Inc. and NorAm Energy Corp. ($3.8 billion). NorAm is the nation's third-largest U.S. natural gas utility.
Mid-American Power, LLC has bought a 53-Mw, coal-fired generating plant, put it on the power grid, and plans to convert the facility into a 300-Mw, gas-fired, combined-cycle plant. Mid-American bought the E.J. Stoneman Station in Cassville, WI, from Dairyland Power Cooperative after almost two years of negotiations. The companies making up Mid-American include Power Systems, Ltd., Burns & McDonnell Engineering, Inc., and WPS-Power Development, Inc. The plant supplies energy to two regional utilities.
Christopher M. Coburn and Charles William Burton were confirmed by the U.S. Senate as directors of the U.S. Enrichment Corp. Both will serve five-year terms. Coburn is v.p. of the Technology Partnership Practice for Battelle Memorial Institute. Burton, an attorney, is of counsel to Jones, Day, Reavis & Pogue.
Northern Indiana Public Service Co. promoted Dorothy M. Hawkins to information technology director. Kennan J. Walsh, senior rate specialist, was promoted to senior (electric) regulatory specialist. Gregory A.
One thing that adds some fun to my job (notice, I did not say that my job is fun) is the chance to compare similarities between the gas and electric markets.
Antitrust is not another form of regulation. Antitrust
is an alternative to regulation
and, where feasible, a better alternative.
(em Stephen G. Breyer,
"Antitrust, Deregulation, and the Newly Liberated Marketplace,"
75 Calif. Law Rev. 1005, 1007 (1987).
By Robert J. Michaels
The Justice Department's Guidelines don't tell us very much about
today's (or tomorrow's) electric market.
However many electric utilities remain after this merger wave, competition will be forever changed.
Monopoly rents? Not in the short run. The real enemy is a price war, fueled by indifference to stranded costs. And when that happens, antitrust laws won't offer much help.Competition has formally begun in the electric service industry. The Federal Energy Regulatory Commission (FERC) has issued Order 888, giving generators access to wholesale loads throughout the nation.
Whether you're a utility commissioner in Wyoming or Georgia, a v.p. for a leading marketer, or a commission division director in New Jersey, you share a common activity: learning by the seat of your pants about deregulating gas markets. In this gas forum, PUBLIC UTILITIES FORTNIGHTLY highlights developments across the nation.