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Law & Lawyers

Three "Workshops" Down, More "Work" to Do

Electric's Players Tell Senate Panel Where to Jump In, Butt Out

With three hearings behind it, what has the Senate panel on electric restructuring learned from regulators, utility execs and other industry types who have testified?

Granted, some candor has emerged from all the maneuvering and positioning typical of electric industry and sector leaders, but is that enough for the Senate Committee on Energy and Natural Resources to develop a position on federal legislation, without input from energy consumers and the voting public?

Sen. Frank H.

Byline: 
Joseph F. Schuler, Jr.
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Perspective

Every electric utility is looking for new ways to market energy to customers. And why not? Hospitals and other health care organizations constitute one customer segment sorely in need of a new marketing campaign. Even so, the utilities are making many mistakes. The health care sector can present a unique challenge to the utility marketing professional.

The first mistake that utilities make is assuming that hospitals are run like businesses. Technically, hospitals are not businesses. Hospitals do not function like businesses.

Byline: 
Michael Garvin
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LIPA Takes Over LILCO

The Brooklyn Union Gas Co. and The Long Island Lighting Co. have agreed with the Long Island Power Authority for LIPA to acquire all of the Long Island Lighting Co.'s electric transmission and distribution system, plus substantially all of its regulatory assets and its share of the Nine Mile Point 2 nuclear plant.

The transaction would take place through a stock purchase from the holding company, which Brooklyn Union and Long Island Lighting Co. will form.

Byline: 
Lori A. Burkhart
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Enid, Okla., Flights to Municipalize

The city commissioners of Enid, Okla., voted to buy the portion of the electric distribution system of Oklahoma Gas and Electric Co. located within city limits, in agreement with a buy-out clause contained in the franchise agreement between the utility and the city.

The city's 25-year franchise agreement with Oklahoma Gas & Electric will expire in June 1998, but Enid must notify the utility one year in advance if it wants to terminate the agreement.

Byline: 
Lori A. Burkhart
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Gas Marketing Affiliates: Why Mandate a Corporate Separation?

Competitors would have LDCs quit the merchant function and restrict

their dealings with affiliated marketers. But is that really good for consumers?

Those who would restrict business dealings between natural gas local distribution companies and their marketing affiliates (em going so far as to ban LDCs from the merchant function (em often overlook one critical downside: what those rules would mean for the small gas customer.

A regulatory policy for a code of conduct and LDC merchant service must improve the position of consumers.

Byline: 
Pamela L. Prairie
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Electric/Gas Convergence, Meter-to-Meter

Enova/PE merger finds

California utilities learning

how to "micro-unbundle."

here's a meter war ticking away out West, pitting natural gas against electricity.

Enova Corp. is set to acquire Southern California Gas Co. through a merger with the gas utility's parent company, Pacific Enterprises. This strategy raises a tantalizing question: Can the new, merged company sell electricity "through" SoCalGas meters, using customer contacts on the gas side to grab market share in electricity from Southern California Edison, whose territory overlaps that of SoCalGas?

Byline: 
Joseph F. Schuler, Jr.
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Gas-fired Generation: Can Renewable Energy Reduce Fuel Risk?

Some in Congress would link customer choice with a portfolio standard. How would that play in a wholesale power market where gas turbines rule the roost?

By Michael C. Brower and Brian Parsons

WHAT KINDS OF POWER PLANTS WILL

get built in a deregulated electric industry? If recent history offers any guide, utilities and independent power companies will succumb to the traditional wisdom and invest in gas-fired combustion turbines and combined-cycle plants. Sound reasons may exist for doing so. The plants are less expensive than conventional steam plants. They put less capital at risk.

Byline: 
Michael C. Brower, and Brian Parsons
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Frontlines

If Jane Austen were writing this column, she would begin something like this: "It is a truth university acknowledged, that a natural gas distributor in possession of a good franchise must be in want of an electric utility to merge with."

That's the rule of electric/gas convergence. But as an editor, my instinct when I uncover such a "rule" tell me to look for a reason why it ain't so. That's why I got such a kick from a recent conversation with Sheldon Silver, the speaker of the New York State Assembly.

Byline: 
Bruce W. Radford
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Joules

Zond Development Corp. will supply MidAmerican Energy Co. with 45 MW of wind-generated power per month for 20 years. Terms of the agreement were not released, but Zond will begin supplying energy within three years of regulatory approval. The contract helps fulfill the utility's alternate energy requirements under Iowa law. Zond will generate the power from about 150 wind turbines planned for Buena Vista County. The windmills will interconnect with the MidAmerican transmission system at a nearby substation.

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Oregon PUC Staff Set To Nix Combo

A senior staff member of the Oregon Public Utilities Commission has informed Portland General Corp. and Enron Corp. that the PUC plans to recommend disapproval of the proposed merger between the two utilities.

The decision will run in the staff's final report, which is expected to be released April 11. "We are not trying to kill the merger," said Phil Nyegaard, PUC staff member.

The staff believes that Enron's offer of $61 million in guaranteed cost savings and rate reductions does not provide sufficient benefits to meet the mandates for merger approval.

Byline: 
Lori A. Burkhart
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