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Law & Lawyers

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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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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Foundation Decries Lavish Recovery

The Heritage Foundation has released its second report in a series on electric deregulation, aimed at capturing the attention of lawmakers on Capitol Hill now holding hearings on proposed legislation to restructure the electric industry.

The new report, Electricity Deregulation: Separating Fact From Fiction in the Debate Over Stranded Cost Recovery, by Adam D. Thierer, concludes that lavish stranded cost recovery is not justified, and that the "sky will not fall" if stranded cost recovery is limited or denied.

Byline: 
Lori A. Burkhart
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Real-Time Pricing: Chinks in the Armor

Regarding the Hanser, Wharton and Fox-Penner article on real-time pricing ("Real-Time Pricing (em Restructuring's Big Bang," PUBLIC UTILITIES FORTNIGHTLY, March 1, 1997, p. 22), the authors state that RTP programs will defer capacity needs and reduce peak loads. I doubt it. People don't mind paying high prices per kWh for a few hours each year. On the other hand, there is nothing like an old-fashion ratchet to get people to reduce their peak demand.

Byline: 
Jim Lundrigan
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ISO/PX Plan Goes to FERC; BPA Unhappy

California's three largest investor-owned electric utilities have submitted their proposals to the Federal Energy Regulatory Commission for implementing an independent system operator and power exchange for the state's restructured electric industry (Docket Nos. EC96-19-001 and ER96-1663-001).

Last November, the FERC had conditionally approved an "acceptable framework" submitted by Pacific Gas & Electric Co., San Diego Gas & Electric Co., and Southern California Edison (the trustee for the ISO and PX is S.

Byline: 
Lori A. Burkhart
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People

El Paso Energy Marketing hired Kathy Eisbrenner as senior v.p. Eisbrenner previously was with LG&E Natural Inc.

Cameron Raether, XENERGY senior consultant, was elected to the board of the Power Association of Northern California. Raether serves as chair on several boards and specializes in market evaluations for large electric and natural gas end users.

Robert G. Edwards was elected v.p. at Columbia Division of SCANA Energy Marketing Inc. Edwards joined SCANA in 1992 as a gas sales representative and has held various marketing positions.

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FERC Oks GAPP Test Tracking Transmission Flows

The Federal Energy Regulatory Commission recently gave final approval to a two-year experiment to track electricity as it travels over transmission lines (Docket No. ER97-697-000).

The experimental program, approved March 25, finalizes work proposed by a group of seven companies working independently on the General Agreement on Parallel Paths (GAPP). Other GAPP members had chosen to disband the formal GAPP committee in 1995.

The program calls for information on transmission paths to be made available electronically to all participants.

Byline: 
Lori A. Burkhart
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Joules

A new study takes a look at using the benefits of electric utility deregulation to increase trade and investment between the U.S. and Mexico. Published by the Salt River Project, or SRP, and the Comision Federal de Electricidad, the study aims to help companies understand the legal and regulatory regimes of the two countries and the potential opportunities to buy and sell power across the border via high-voltage interconnections. Others involved with the study included the

U.S. Agency for International Development, Price Waterhouse and Bechtel.

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Restructuring Backlash Hammers States

Electric restructuring at the state and federal levels is moving forward fast (em too fast for some. Utilities, unions, consumers and even legislators are making their opposition known by filing lawsuits to block or slow down various restructuring initiatives, from New England to Dixie to the Desert Southwest.

Rolling Back Legislation

Pennsylvania and New Hampshire already have enacted legislation to guarantee customer choice in retail electric markets. Even so, some parties are asking for a rollback.

Byline: 
Lori A. Burkhart, Jamie B. Simon, and Elizabeth Striano
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