Become a PUF Member Organization

Law & Lawyers

Frontlines

Two months ago in this space, I interviewed a power marketer and an independent power producer who sit on the operating and engineering committees of the North American Electric Reliability Council. What did they think of NERC, a group formed to prevent large-scale power outages and made up largely of volunteers from investor-owned electric utilities? Were they treated fairly? Did they have a chance to influence policy?

In general, my two "outsiders" felt satisfied with their status on the committees, though some skepticism emerged about NERC's internal decision-making process.

Byline: 
Bruce W. Radford
Read Entire Article

People

Former Sen. Alan K. Simpson (R-Wyo.) has joined the PacifiCorp board of directors. Simpson retired from the Senate earlier this year after serving three terms. Also at PacifiCorp, Dennis Steinberg, a senior v.p., was named head of global energy sales, marketing and trading. John Bohling, another senior v.p., will direct customer service, among other activities. Mike Henderson will head a new group for international business, technology and planning.

John M. Deutch has returned as a member of the CMS Energy Corp. Board of Directors. Deutch served on the board from 1986 to 1993.

Read Entire Article

Trends

As the U.S. Congress works to pass federal legislation introducing competition into the electric utility industry, one of the most divisive issues regulators and policymakers must grapple with is that of stranded cost. In a recent study completed by Resource Data International, we have found that an important issue will be how "negative" stranded costs are handled.

At the heart of our study is a detailed, plant-by-plant, analysis of stranded costs for every utility in the country. We estimate that the total above-market stranded cost nationally is $202 billion.

Byline: 
Christopher Seiple
Read Entire Article

Joules

XENERGY Inc. and the Electric Power-Research Institute will team up in a second phase of a retail-wheeling pilot program study. The expanded study will include California, Massachusetts, Illinois and New York. Competitors, market share and sales strategies will be assessed. XENERGY first started the survey in July 1996. More than 40 utilities sponsored the research. The first phase focused mostly on New Hampshire, but also targeted electricity deregulation in the 50 states. Phase two, focusing on commercial-industrial customers, ends June 1997.

Read Entire Article

Censored PUC Report Raises Ire

The Pennsylvania Public Utility Commission has refused to issue its 1996 report card of the state's electric, telephone, natural gas and water utilities. The reports usually are issued on an annual basis to little fanfare, but with the advent of varying degrees of competition, the commissioners have disagreed over the amount of performance information that should be released.

According to an article in the Philadelphia Inquirer, the controversy began when PUC Commissioner Robert Bloom wanted sections of the report removed that could cause discomfort to some utilities.

Byline: 
Lori A. Burkhart
Read Entire Article

Co-op Would Offer Green Power

The Dakota Electric Association, which buys its power from Cooperative Power of Eden Prairie, Minn., has asked the Minnesota Public Utility Commission to allow it to provide its members the option to purchase energy generated from renewable resources. Energy produced by wind generators would be made available to consumers in 100-kilowatt-hour blocks of energy. Customers would be allowed to purchase blocks equal to their normal monthly usage. A 12-month commitment would be required. The cost of each 100-kWh block would be slightly higher to reflect the higher cost of wind energy. Lori A.

Byline: 
Lori A. Burkhart
Read Entire Article

Utilities Clash in Chicago

Wisconsin Electric Power Co., outbid about 60 companies to supply electricity to Chicago's Public Housing Authority, now served by Commonwealth Edison Co., which says it will refuse wheeling services. The housing authority says the deal with WEP would allow it to shave about $5 million off its $10-million, annual CE electric bill. The authority currently pays CE roughly 7.2 cents per kilowatt-hour, but would pay less than 3 cents per kWh to WEP, excluding wheeling charges. The dispute may well end up before the Federal Energy Regulatory Commission.

Byline: 
Lori A. Burkhart
Read Entire Article

University Fights Stranded-Cost Fee

Lawyers for the Massachusetts Institute of Technology on Feb. 4 argued before the Massachusetts Supreme Court that their client should not be made to pay $6 million to Cambridge Electric Light Co. to cover stranded costs for building its own $50 million on-campus generating plant, as directed by the state utility commission. MIT said it would never have built the plant had it known about the fee. A ruling is expected in the spring.

Byline: 
Lori A. Burkhart
Read Entire Article

New York Aims for Flexible Rates

The New York Public Service Commission on Feb. 12 pushed toward competition by approving a multi-utility pilot program for electric retail access for commercial farms and food processors, and by allowing utilities to use their flexible-rate programs to compete against economic-development power offered by the New York Power Authority (Docket 97012/94EO385).

The Dairylea farming cooperative had asked the commission to approve a pilot open to commercial farms and food processors, except those that already have flexible rate contracts. The PSC agreed.

Byline: 
Lori A. Burkhart
Read Entire Article

Carolinas Move Toward Restructuring

North Carolina and South Carolina, both relatively low-cost power states, recently have made moves toward competition. In North Carolina, bills calling for the formation of a study commission to examine the introduction of electric supplier choice in that state were introduced in the House (H.B. 12) and Senate (S.B. 38). The intent to introduce choice has prompted the North Carolina Coalition for Customer Choice in Electricity to call on legislators to develop a report by April 1998, in time for a bill to be considered by the General Assembly that same year.

Byline: 
Lori A. Burkhart
Read Entire Article