Two utility merger lawyers at LeBouef, Lamb, Green & MacRae predict that the Federal Energy Regulatory Commission (FERC) will continue to receive many merger applications, though some will differ from the classic merger between neighboring utilities. Douglas W. Hawes and Samuel Behrends IV have filed comments in the FERC's merger rulemaking proceeding, recommending that the FERC implement "fast track" proceedings for the next generation of mergers.
Madison Gas and Electric Co. (MGE) has asked the Federal Energy Regulatory Commission (FERC) not to approve the proposed merger of Wisconsin Energy Corp. (WE) and Northern States Power Co. (NSP) to form "Primergy." MGE claims that the merger would not only subject Wisconsin's electric consumers to higher prices, but severely impair competition.
According to Mark Williamson, MGE senior vice president of energy services, the Primergy merger would create market concentration in generation and transmission, resulting in market power abuses and anticompetitive conduct.
electric industry restructuring.
That's what Matthew Freedman, energy policy analyst, announced at a Public Citizen briefing on the advocacy group's Power for the People, a "public interest blueprint" for the new electric market.
"Competition in the electric power industry could either usher in a new era of cleaner, more affordable energy services or prove to be the biggest customer shakedown of our time," the report reads.
Former Defense Secretary Caspar W. Weinberger told a gathering of utility and renewable energy executives that he supports conservation efforts to reduce the risk of another major oil crisis, but that the government's role in renewables should be limited.
"I think you're not going to get more energy efficiency simply by spending more money," Weinberger said at the Seventh Annual Energy Efficiency Forum sponsored by the U.S. Energy Association and Johnson Controls in Washington, DC.
The Nuclear Waste Strategy Coalition (em a group of 36 state regulatory agencies, Attorneys General, and utilities from 20 states (em has renewed calls for storage and disposal facilities since the U.S. Department of Energy (DOE) accepted 20 metric tons of radioactive waste from 41 countries. The waste derives from nuclear fuel originally provided by the United States to foreign power plants. The bulk, 19 tons, goes to the Savannah River Site in South Carolina; the Idaho National Engineering Laboratory receives the remainder. U.S. taxpayers pick up the tab: about $1 billion.
Despite two years of debate, little progress has been made toward a solution to the issue of stranded costs. And since the two sides have almost no common ground, any accommodation seems unlikely. Utilities that seek stranded-cost recovery appear to have the upper hand at present, but the stiffest resistance still lies ahead. The Federal Energy Regulatory Commission's Order 888 clearly favors utilities, but customer reaction signals a shift to another venue.
Sound bites from state and federal regulators.
Economic Development Programs. Connecticut allows LDC to redirect margin-sharing funds from interruptible and transportation sales to support economic development and reduce residential hardship assistance balances. Caps annual program funding at $6 million. Rejects proposal that shareholder funds match ratepayer contributions. Docket No. 93-03-09 Reopening III, Apr. 25, 1996 (Conn.D.P.U.C.).
Demand-side Management.
The Pennsylvania Public Utility Commission (PUC) has authorized Duquesne Light Co. to expand its economic development rate initiatives to include small industrial customers. The new rate rider provides a five-year discount on demand charges on a maximum of 100 kilowatts (Kw) for new or existing customers smaller than 100 Kw. If the utility's service territory is to recover from the steel industry's devastating downturn, the PUC argued, Duquesne must be able to offer a competitive rate to keep industrial operations of all sizes.
The California Public Utilities Commission (CPUC) has rejected claims that an experimental performance-based rate plan for San Diego Gas and Electric Co., a combined electric and natural gas utility, was yielding "perverse results" and should be modified in keeping with the PUC's purposes in establishing the experiment. According to the Utility Consumers' Action Network, the utility had earned a profit that exceeded its authorized return by 114 basis points while the plan was in effect.