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.
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.
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.
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.
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.
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.
On May 13, Environmental Protection Agency (EPA) Administrator Carol M. Browner referred the Federal Energy Regulatory Commission's (FERC's) open-access rule, Order 888, to the Council on Environmental Quality (CEQ). In effect, Browner has asked the Clinton Administration to intervene in the restructuring process.
Browner feels that under certain circumstances the open-access rule could lead to future increases in air pollution. She believes these impacts can be minimized through a combination of actions by EPA and states under the Clean Air Act (CAA).
After a year and two task forces, the National Association of Regulatory Utility Commissioners (NARUC) could soon have a new structure.
"With all these industry changes, we need to look internally, as commissions are also being asked to change, to see what changes will compliment what's happening out there in the industry," says John Gawronski, NARUC spokesman.
Objective. Estimate market impacts of "1+" dialing parity plus eliminating traditional LATA boundary.
Model. Measure shifts in market dominance between major competitors, by assuming price changes and estimating revenue impacts across range of demand elasticities, to reflect both changed rates and market shares. Also consider changes to revenues collected by U S WEST through carrier access charge (CAC).
Scope. Limited to residential toll calls carried by AT&T and U S WEST. Does not examine commercial toll customers.
Data.
Flexible pricing schemes generally fall into four categories:
Load Retention Rates. Can prevent a customer from exiting system, either by relocating or choosing to self-generate. If retail competition is allowed, load retention rates can prevent customers from choosing a different generation company.
Economic Development Rates. May attract new customers to a service territory, or encourage existing customers to expand operations and boost demand. Differ from load retention rates by purporting to create jobs.
Flexible Rates (Flexrates).