Is One Merger as Good as Another?
In late November, the Federal Energy Regulatory Commission (FERC) put off immediate approval of the proposed merger between The Washington Water Power Co. and Sierra Pacific Resources (to form "Altus"), and set the case for hearing. The reason? The FERC doubted whether the merger would achieve operational efficiencies between the two noncontiguous utilities.
Management expert Peter F. Drucker has observed that our society has entered a "post-capitalist" stage in which economic activity is organized around information: "The basic economic resource ... is no longer 'capital' nor 'natural resources'...
To listen to some, EDI stands for "Everybody's Doing It." But there's more to it than that. The natural gas market is not simply about electronic bulletin boards (EBBs) or electronic data interchange (EDI), which reconciles potentially inconsistent data, protocols, and trading customs among pipelines, shippers, distributors, and end users. Instead, it should be about solutions (em solutions that work across regions, across enterprises.
EDI is tough.
The deregulated power market will feature large numbers of buyers and sellers. Buyers will worry that prices will rise unexpectedly above current levels; sellers will worry that prices will fall unexpectedly. Some will be interested in fixed-price forward deals that protect them from these risks.
On November 7, 1995, voters in Aberdeen, NJ, went to the polls to elect local and state officials. Also on the ballot were public questions (em including one asking Aberdeen residents whether the township should build or acquire electric transmission and distribution facilities. Eighty-six percent of the voters nixed the idea. What follows is a case study of how the issue got on the ballot and how the local utility defeated the effort. The story reveals what it takes to defeat a municipalization drive: support from municipal government, the public, and your union.
Anchor Glass Tries to Shake JCP&L Stranglehold
By Joseph F. Schuler, Jr.
Why assume that a city or town
can't run a power plant?
It wasn't a demand for a $2-million rate cut. It was a request for a rate in line with neighboring New Jersey utilities.
That's how Walter J.
Why will cost-of-service studies continue to prove useful in a competitive market?
Cost is one of more than a dozen factors to consider in setting prices, whether in a regulated environment or a competitive regime. However, the relative significance of these factors will change under competition, when understanding the true cost of an individual service will actually become more important than under regulation.
As I began to write this column, the California Public Utilities Commission (CPUC) was slated in less than 30 minutes (this time, for real) to unveil its final proposed plan to restructure the electric utility industry. After the deed was done, on Wednesday, December 20, I logged on to ftp.cpuc.ca.gov and downloaded the text of the two opinions, issued by California commissioners Daniel Fessler and Jessie Knight.
Robert W. Foy replaced Charles H. "Bud" Stump as chairman of California Water Services Co. Stump, who has been with the company 45 years, will remain on the board. Foy, president and CEO of Pacific Storage Co., has been a CWS director since 1977.
The Gas Research Institute board of directors elected Christine A. Hansen and Stanley C. Horton as new members. Hansen, executive director of the Interstate Oil and Gas Compact Commission, joins GRI as an at-large director.
jü( )l, n: A unit of energy measurement equal to a watt-second.
Tenneco Energy and Chinese Petroleum Corp.'s new alliance plans to work on natural gas transmission facilities, power plants, and other energy ventures in Taiwan and North America. Their first project is a
600-Mw natural gas-fired power plant near Taipei, expected to go on line in June 1998. CPC is one of Asia's largest state-owned energy companies; Tenneco Energy, of Houston, transports or markets about 16 percent of the natural gas used in the United States.