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Law & Lawyers

Power Pool Politics: How New England Agreed to an ISO

With its membership opened, NEPOOL sets a transmission tariff, but still must develop competitive markets. In 1993, after a series of attempts going back as far as 1971, the New England Power Pool failed to reach agreement among its members for a regional transmission arrangement. But destiny then took over (em with help from the newly enacted Energy Policy Act (em to lead pool members back to the bargaining table. Finally, on Sept. 30, 1996, NEPOOL announced that its executive committee had agreed in principle on restructuring the pool.

Byline: 
Gordon L. Weil
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Trends

Competitive Power Markets

Put Capacity at Risk

Generation markets in the U.S. are about to go through a period of radical transformation as full competition is introduced to the industry. One of the largest impacts of this transformation will be the creation of a more efficient generation industry. According to a new study by Resource Data International, the drive towards increased efficiency will result in the premature shutdown of some high-cost, inefficient power plants.

Our analysis starts by analyzing the costs of every utility owned power plant in the country.

Byline: 
Kent Knutson and Chris Seiple
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Frontlines

One of these days you may see a former chairman of the American Gas Association become the new chair of the Edison Electric Institute. Or maybe the other way around.

I broached this subject the other day when I found myself downtown at EEI headquarters on Pennsylvania Avenue, talking with some association reps.

Byline: 
Bruce W. Radford
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Bumpers' Bill Introduced In 105th Congress

A national electric competition bill introduced by Senator Dale Bumpers (D-Ark.) Jan. 30 that would allow customers to choose their electric supplier by December 2003, invoked mixed reactions.

Bumpers, the highest ranking Democrat on the Senate Energy and Natural Resource Committee, said the bill would establish a uniform federal system to avoid "certain chaos," which would result from legislating different guidelines for the industry.

Byline: 
Lori A. Burkhart
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People

Dennis L. Haider succeeded the retiring R.J. White as president of Prairielands Energy Marketing, Inc. Haider moved over from v.p.-operations for the Williston Basin Interstate Pipeline Co., another unit of MDU Resources Group Inc. Prairielands became a subsidiary of Williston Basin when Haider took over as president.

In a related development, Ronald G. Skarphol, a special projects manager of Montana-Dakota Utilities Co., takes White's place as v.p.-marketing and business development. Montana-Dakota is another MDU division.

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Ensource Cancels Out in Jurisdictional Ploy

The Federal Energy Regulatory Commission allowed Ensource, a subsidiary of Pacific Enterprises, to cancel its authorization to engage in power marketing activities at market-based rates.

Intervenors protested that Ensource pursued the cancellation as a tactical maneuver to remove the proposed merger between Pacific Enterprises and Enova from FERC review. They claim that the merger applicants ultimately would resume Ensource's operations and make it part of a post-merger joint venture to market electricity, natural gas and energy-related services at market-based rates.

Byline: 
Lori A. Burkhart
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Mailbag

If truth is the first casualty of war, as we learned from author Mark Krebs ("It's a War Out There: A Gas Man Questions Electric 'Efficiency,'" December 1996, p. 24), then certainly the truth has been mutilated beyond recognition.

His article, which suggests that electric utilities have used conservation and demand-side programs improperly (to build electric load at the expense of natural gas!) is full of inaccuracies, misleading charts and other errors.

Byline: 
Steven Rosenstock, P.E., and Mark E. Krebs
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FERC Takes on Stranded Cost Proposal

The Federal Energy Regulatory Commission set a hearing for a proposal by New England Power Co. to divest its generating assets and add a termination charge reflecting generation costs that will be stranded due to early service termination.

This move, made on Jan. 29, marks the first time the FERC will consider a case-specific proposal for dealing with stranded costs in the context of corporate restructuring proposals, as allowed by Order 888 (Docket No. ER96-2367).

Byline: 
Lori A. Burkhart
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Joules

Peabody COALSALES Co. agreed to provide Minnesota Power as much as 2.5 million tons of low-sulphur coal each year. Coal will be supplied by Peabody affiliate Big Sky Coal Co. Big Sky's contract with the power company ends in May; the new agreement runs through 1999. Terms of the deal weren't released.

The Georgia Public Service Commission begins a series of workshops on electric industry restructuring next month. The workshops will examine national efforts, consumer ramifications and environmental and energy efficiency issues. Stranded costs also will be targeted.

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FERC Looks at Avoided Cost Issues

The Federal Energy Regulatory Commission ruled that the Iowa Utilities Board's decision to implement an Iowa statute, which obligates electric utilities to purchase power from qualified facilities at rates in excess of the purchasing utilities' avoided costs, is preempted by the Public Utility Regulatory Policies Act (Docket No.

Byline: 
Lori A. Burkhart
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