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Law & Lawyers

Bipartisan Energy Politics? 105th Congress Takes on Electric Restructuring in Earnest

"It's going to take a lost of time to understand all the pies."

It's almost spring. There's a new energy secretary(emisn't there? And at least for new electric restructuring bills in Congress. Sen. Frank H. Murkowski (R-Alaska) is chairing "workshops" on deregulation at the Energy and Natural Resources committee.

Everyone's wondering: Which bill take hold? Where will it be and how will it look by the end of the legislative session: dead, alive, or limp?

Byline: 
Joseph F. Schuler, Jr.
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Off Peak

N.H. Discovers What Residents Really Want (em And Don't

While electricity consumers are interested in lower bills, they're unlikely to change suppliers even though they could save money.

That's one of the seemingly conflicting results of a survey of 400 people who participated in the New Hampshire electric pilot program. The program, started in late May 1996, targeted 17,000 customers, and still is under way.

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Frontlines

Wall Street loves stranded costs. No kidding. For stockbrokers and underwriters accustomed to selling utility issues to widows and orphans, the prospect of asset-backed financing opens a whole new world. I'm talking here about "securitizing" stranded costs.

In a securitization, a trust takes beneficial title to utility assets (tangible or intangible) that have lost their value in the market, and sells "transition bonds" to a new set of investors, funneling the bond sales proceeds back to the utility and to its equity investors. Who pays the coupon? Why, it's the customer of course.

Byline: 
Bruce W. Radford
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In Brief...

Sound bites from state and federal regulators.

Gas Supply Affiliates. Arkansas oks plan by Arkla to continue to rely on NorAm Gas Transmission Co. (an affiliate) for the bulk of its supply requirements, but directs the utility to evaluate its supply options and to "be prepared" to shift to an independent supplier for gas inventory and capacity. NorAm agreed to "rachet-down" its price to meet third-party offers. Docket No. 95-401-U, Order No. 34, Jan. 9, 1997 (Ark.P.S.C.).

Electronic Billing. Michigan regulators approve program by Consumers Power Co.

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NGSA Claims Gas Could Be Hurt By Restructuring

The Natural Gas Supply Association said that electric restructuring bills proposed in Congress and by the Clinton Administration contain several provisions that could "significantly" and "unfairly" reduce the competitiveness of gas-fired electricity.

NGSA warned that utilities likely will dispatch electricity from different fuel sources in order of lowest-to-highest marginal cost, and the marginal costs of gas-fired power generally are higher than power fired by coal, nuclear and hydro.

Byline: 
Lori A. Burkhart
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FERC Conference to Explore Gas Issues

The Federal Energy Regulatory Commission has issued its notice of a public conference on "Issues and Priorities for the Natural Gas Industry," which will be held May 29 and 30. The FERC wants to gather information to establish its regulatory goals and priorities in the post-Order 636 environment (Docket No PL97-1-000).

The FERC is requesting a broad analysis of present and future industry issues, including those deemed the highest priority for FERC action.

Byline: 
Lori A. Burkhart
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Dynamic Scheduling: The Forgotten Issue

But not for long (em as power producers and

customers get more creative in matching plants with loads Dynamic scheduling is a "sleeper" issue in the move toward electric competition. Industry players are debating independent system operators. They are focusing on issues of governance and the form of transmission pricing. Consequently, they are ignoring critical issues concerning ancillary services. These services are not receiving the attention they deserve.

Byline: 
Eric Hirst, and Brendan Kirby
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Retail Gas Reform: Learning from the Georgia Model

New legislation would tackle the most difficult problem (em low load factors for small-volume customers.

We commend the Natural Gas Competition and Deregulation Act, SB 215, passed by the Georgia General Assembly in March. (Governor Zell Miller was expected to sign the bill in April.) The Georgia legislation envisions a new framework for regulating the retail gas market.

Byline: 
George R. Hall, and Richard J. Pierce, Jr.
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New Hampshire Issues Final Plan for Electric Restructuring

PUC endorses direct access, plant divestiture and limits on recovery of stranded costs. Says order will not interfere with 1990 bankruptcy plan for Northeast Utilities. The New Hampshire Public Utilities Commission has issued its final plan for restructuring the state's electric industry, at the same time announcing what is believed to be the first formal policy decision by a state utility commission that would deny full recovery of costs left "stranded" by the transition to competition.

Released on Feb.

Byline: 
Phillip S. Cross
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Insurance Recovery for Manufactured Gas Plant Liabilities

Valuation, optimization and settlement strategies

oth gas and electric utilities face a variety of environmental issues arising from more than 1,500 former manufactured gas plant (MGP) sites, which supplied a major source of energy in the United States from the early 1800s to the mid-1900s. Using the standard operating procedures of the day, MGPs created and often disposed of byproducts such as coal and oil tars, tar/water emulsions, sludges, spent oxides (including cyanides), lampblack, ash and clinker.

Byline: 
Gayle S. Koch, Kenneth T. Wise, and Philip Hanser
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