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Power Shortages Loom With Shutdowns

Midwest and New England Are Threatened

To head off potential problems, states in the Midwest and New England are reacting now to impending plant shutdowns, which are threatening to cause serious electric supply shortfalls this summer.

The Midwest. The shutdown of Wisconsin's two nuclear plants, Kewaunee and Point Beach, is predicted to cause the state's worst power shortage. In addition, up to five coal-fired plants were scheduled for maintenance shutdowns. To deal with the anticipated shortage, the Wisconsin Public Service Commission on April 22 adopted an emergency plan.

Byline: 
Lori A. Burkhart
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ConEd Wants Controversial Industrial Rate Cut

A controversial electric restructuring settlement proposed by Consolidated Edison Company of New York to the New York Public Service Commission, which includes a 25-percent rate cut for some industrial customers, was attacked as hostile to small customers.

ConEd filed the plan in response to the PSC's efforts to develop a new framework for the state's electric industry in its "Competitive Opportunities" proceeding (Case 97018/96EO897). ConEd's proposed five-year plan would run through March 31, 2002 and cut rates by $655 million.

Proposal Details.

Byline: 
Lori A. Burkhart
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Competition to Shut GPU Nuclear Plant

The owners of General Public Utilities Corp. are planning either to sell or shut down Oyster Creek nuclear plant, because they claim the plant's above-market electric prices will not be competitive in an open market. The selling price would be set around $700 million.

According to GPU President and COO Fred D. Hafer, the electric generated at Oyster Creek costs the utility about 1 cent to 1.5 cents more per kilowatt-hour than the current market price for energy.

Byline: 
Lori A. Burkhart
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New Jersey Issues Restructuring "Master Plan"

The New Jersey Board of Public Utilities has issued its final master plan on electric restructuring, which could cut electric rates by 10 to 15 percent starting October 1998. The plan allows all customers to choose electric suppliers by July 2000.

The board now will submit "Restructuring the Electric Power Industry in New Jersey: Findings and Recommendations" to the governor and Legislature.

The plan would phase in retail choice, beginning with 10 percent of all residential, commercial and industrial customers, in October 1998.

Byline: 
Lori A. Burkhart
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Joules

New Environmental Technologies Inc. agreed to acquire Keystone Energy Services Inc. The new company will be called Keystone Energy Services. In an alliance with New Energy Ventures Inc., it plans to target the $22.5-billion California electric market. Keystone will re-sell part of the $500 million worth of power New Energy Ventures recently agreed to buy from the Bonneville Power Administration. Keystone will focus on small- to medium-sized electric consumers while its partner will target industrial, commercial and government accounts.

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FERC Proposes Non-Bypassable GRI Funding Method

In a notice of proposed rulemaking, the Federal Energy Regulatory Commission has posed a new method of funding the Gas Research Institute, while extending the present funding method for one year (see, FERC Docket Nos. RM97-3-000 and RP97-149-000).

The current funding mechanism allows GRI-member pipelines to discount a FERC-approved GRI surcharge, then remit to GRI only those funds recovered. The FERC noted that this mechanism threatens GRI's research, development and demonstration efforts.

Byline: 
Lori A. Burkhart
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California IOUs Seek Securitization

California's three largest investor-owned utilities have asked the California Public Utilities Commission to approve securitization of up to $7.3 billion of stranded costs.

The utilities would issue 10-year bonds through the state infrastructure bank starting by the end of 1997. The "rate reduction bonds" would be repaid through a stranded cost charge levied on present ratepayers. The amounts applied for are: $3.5 billion by Pacific Gas & Electric; $800 million by San Diego Gas & Electric Co.; and $3 billion by Southern California Edison Co.

Byline: 
Lori A. Burkhart
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New York Asks FERC for ISO, PX, Council

New York state's electric utilities in a joint filing at the Federal Energy Regulatory Commission have called for creation of an independent system operator, a power exchange and a reliability council, termed the "New York State Reliability Council."

The proposal stems from a collaborative process and is intended to complete the transition to full compliance with FERC Order 888. It includes numerous provisions:

• New York ISO. Would control state's bulk power transmission facilities;

• Transmission Pricing.

Byline: 
Lori A. Burkhart
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Primergy Merger Collapses Due to Delays

The proposed merger of Northern States Power Co. and Wisconsin Energy Corp. to form Primergy has been called off because of delays by regulatory authorities at both the federal and state levels.

"After thorough consideration, we have mutually agreed to terminate our plans," said Richard A. Abdoo, Wisconsin Energy chair, president and CEO.

Byline: 
Lori A. Burkhart
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Low-Cost Federal Hydropower Shared With IOUs

An agreement between PacifiCorp and Bonneville Power Administration will lead to an 8-percent rate cut for PacifiCorp.'s Utah Power irrigation customers in Southeastern Idaho. Impetus for the agreement came from two Idaho legislators, the governor's office and the congressional delegation.

The proposed agreement was filed at the Idaho Public Utilities Commission and also will go through BPA's internal review process. The agreement will result in payments totaling $47.7 million over the next four years from BPA to PacifiCorp for Utah Power's Idaho residential irrigation customers.

Byline: 

Lori A. Burkhart

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