Central and South West Corp.'s subsidiary, Central Power and Light Co. (CPL), has proposed that all ERCOT nonnuclear utilities (em including IPPs, co-ops, and municipals (em become part of a competitive wholesale bulk power pool run by an independent system operator (ISO).

Transmission and distribution companies would continue to own and operate power lines, purchase all nonnuclear generation from the pool, and assume responsibility for actual delivery.

Fitch Investors Service has developed guidelines to rate electric power marketers The firm estimates this "fastest-growing segment" of the changing electric industry could handle as much as $200 billion in annual sales once full deregulation occurs.

According to Fitch, an investment-grade credit rating for power marketers (em "BBB" or better (em would expand the potential amount and scope of their business and help them avoid restrictive counterparty limits as electricity is traded among firms.

The Oklahoma Municipal Power Authority (OMPA) and the Public Utilities Board (PUB) of the City of Brownsville, TX, have announced their intent to form a municipal power pool spanning four states. OMPA is a full and partial requirements wholesale supplier to 35 municipal electric systems in Oklahoma. PUB owns coal- and gas-fired generation plants. The two entities offer a combined supply resource of about 800 megawatts, but rely on the transmission system of Central and South West (CSW).

The New York Public Service Commission (PSC) has approved a plan, "NaturalChoice," allowing customers of Long Island Lighting Co. (LILCO) to purchase natural gas from a qualified supplier of their choice. LILCO is the first company in New York, and one of the first in the nation, to open its gas system to competition.

LILCO's commercial, industrial, and residential gas customers may now choose to purchase gas directly from brokers or to continue purchasing from LILCO.

The Tennessee Valley Authority (TVA) plans to take its first-ever private company partner to convert the Bellefonte Nuclear Plant. The two-unit plant, near Hollywood, AL, will likely be finished as a gas-fired facility. The decision not to complete the units as nuclear plants ended a 28-year policy of nuclear construction at TVA.

South Carolina Electric & Gas Co. began operating its $411-million, 385-Mw Orangeburg County plant January 15.

Pending the approval of state regulators, Puget Sound Power & Light Co. and Washington Energy Co.

Michael Baly, American Gas Association president and CEO, will chair the National Energy Foundation. He replaces Richard Lawson, president of the National Mining Association. Arthur Wiese, Jr., public affairs v.p. of the American Petroleum Institute, was elected vice chair.

Attorney Karen A. Tomcala was promoted to the staff of James J. Hoecker at the Federal Energy Regulatory Commission. Previously, Tomcala practiced in the FERC's electric rates and corporate regulation section.

Oliver Richard is a gas man. His career includes a stint at the Federal Energy Regulatory Commission, as well as at Tenngasco, Northern Natural Gas Co., Enron, New Jersey Resources Corp., and The Columbia Gas System, Inc. Now he's found a new calling. He wants to be an ad man.

Several weeks ago I heard Richard describe his idea for the perfect 30-second TV spot to plug natural gas. Two utility CEOs are on the golf course. "Electricity costs too much," says one. "Some towns can't get gas service," says the other.

s Merger Magic

"Occasionally, yes. There are obviously some fairly easily measurable synergies in some mergers. . . . The real issue, however,

is not whether there are savings. The real issue is could those savings have been obtained without concentrating the economic power that goes with a merger?

"Generally, we've dealt with it with judgment.

Downsizing

"The short answer is 'yes'. . . . Utilities think they have to cut their costs in order to compete. The easiest way to cut costs is to downsize, get rid of people . . . which means they stop doing the work. And the result is a threat to the reliability of service.

s Cherry Picking

"If we ignore history, we're doomed to repeat it. And what happened in the natural gas industry is precisely what will happen. The FERC authorized deregulation of the natural gas industry and, as a consequence, today's retail consumers (em meaning residential retail consumers (em are paying more than twice as much for natural gas as the large industrial users.