Power Marketers: Let's Make a Deal
SIDE SUBHEAD
Everyone talks about them.
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.
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.
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.
Frontlines
In the energy industry, no question defies resolution more than electromagnetic fields (EMF).
The Edison Electric Institute (EEI) reported in late December that electric utilities have contributed close to $80 million for EMF research since the early 1970s. And new efforts are taking shape.
People
Irl F. Englehardt, president and CEO of Peabody Holding Co. Inc., was elected to a two-year term as chairman of the National Coal Association. Steven F. Leer, president and CEO of Arch Mineral Corp., was elected vice chairman. Englehardt will be the 49th industry executive to serve as chairman in NCA's 77-year history.
Gerald E. Putman was made senior v.p. of a new customer service business unit at New York State Electric & Gas Corp.
DOE Prepares to Tighten its Belt
The Department of Energy (DOE) will definitely be leaner in the future, if not outright abolished by the newly Republican Congress. To get a jump on Republicans as well as to help pay for a middle-class tax cut, President Clinton proposes to cut DOE's budget by $10.6 billion over the next five years-a 10-percent cut in the agency's $18-billion annual budget.
Energy Secretary Hazel R.
Williams Moves into the Northeast
On December 12, the Williams Companies Inc. and Transco Energy Co. announced a cash tender offer by Williams to acquire up to 24.6 million shares, or 60 percent of Transco stock, for $17.50 per share. Combined with assumed debt and preferred shares, Williams' acquisition cost will total about $3 billion. Following completion of the tender offer, a newly formed subsidiary of Williams will be merged into Transco, with Transco continuing as a wholly-owned subsidiary of Williams. The boards of directors of both companies have unanimously approved the transaction.
Cajun Files for Chapter 11
Succumbing to the pressure of its debts, the Tennessee Valley Authority (TVA) has halted construction on three nuclear power plants, the only remaining incomplete plants in the nation. According to chairman Craven Crowell, TVA can no longer foot the bill alone. So far, TVA has invested about $4.6 billion in two unfinished units at the Bellefonte Nuclear Plant in Alabama, and $1.7 billion in Watts Bar 2 in Tennessee. TVA estimates it will cost as much as $8.8 billion to finish all three units. (The Bellefonte units are 88 percent and 57 percent complete, respectively.
California Revises "Blue Book" Schedule
The California Public Utilities Commission (CPUC) has issued an interim decision on restructuring the California electric industry (R.94-04-031). The decision calls for the CPUC to propose a policy decision for comment on March 22, 1995, and to adopt a policy decision 60 days later. That policy decision would then become effective in September 1995. To that end, the interim decision establishes a working group to examine how existing social, economic, and environmental programs would hold up under the range of proposed restructuring models.