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Law & Lawyers

Perspective

Uncle Sam buys a lot of power. Who supplies it may depend upon Article I, Sec. 8, Clause 17.

Today's intense competition to sell power should not overlook one large customer - the federal government. The Department of Defense alone consumed $1.4 billion worth of power in fiscal year 1994. Recently, one utility executive was quoted as saying: "We've got power marketers foaming at the mouth for DOD's business."%n1%n

Yet how does a marketer get the business of a federal agency, office or installation if retail wheeling is not mandated?

Byline: 
William A. Mogel
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Public Power: An Inexpensive Insurance Policy Against Consolidation

An Editorial Response:

Some critics wants PMAs out of the electric business. But that could leave market power to a few, large monopolies.

Department of Energy Secretary Federico Peña observed in an address at the recent annual meeting of the Edison Electric Institute: "The [electric utility] industry is incredibly diverse, with investor-owned utilities, municipalities, cooperatives, the federal power system, independent power producers, marketers and others.

Byline: 
Alan Richardson
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Texas May Take Low-Level Waste

The U.S. House Commerce Committee has passed HR 629 approving an agreement by Vermont, Texas and Maine to dispose of low-level nuclear waste at a site in Texas.

The bill, if approved by the full House, would create the nation's tenth low-level waste disposal compact. The proposal already has the support of the various governors and state legislators. Vermont and Maine each would pay $25 million to ship out the low-level waste, which would include materials from nuclear utilities.

The proposed site lies in West Texas, about 90 miles east of El Paso. U.S.

Byline: 
Lori A. Burkhart
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Midwest Compact Kills Disposal Effort Centerior Asks "Why?"

Anatomy of a nuclear waste site death Centerior Energy is mystified. Until June 26, Ohio gladly was on its way to hosting a low-level radioactive waste disposal site. Then suddenly at a three-hour meeting, 13 years of planning crashed and burned.

On that day, the Midwest Interstate Low-Level Radioactive Waste Commission voted to derail development of a low-level waste disposal facility in Ohio. The commission represents the Midwest Compact, which comprises Ohio, Indiana, Iowa, Minnesota, Missouri and Wisconsin.

Byline: 
Lori A. Burkhart
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Joules

Bay State Gas Co. has sold its 17.5-percent equity interest in the Masspower cogeneration plant to Energy Investors Fund Group. The sale price wasn't released; Bay State said it was more than book value. The 240-megawatt, gas-fired combined-cycle plant provides steam for Monsanto Co.

Bridgeport, Conn., is the planned site of a $260-million, 520-MW power plant. Duke Energy Power Services, United Illuminating Co. and Siemens Power Ventures signed a letter of intent to build the gas-fired, combined-cycle merchant plant.

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People

President Clinton appointed James J. Hoecker chair of the Federal Energy Regulatory Commission. Hoecker, former commissioner of the FERC, replaces Elizabeth Moler who was appointed deputy energy secretary at the Department of Energy.

Walter Massey, president of Morehouse College, was selected by Secretary of Energy Federico F. Peña to replace Robert Hanfling as chair of the Secretary of Energy Advisory Board. Also at SEAB, Skila Harris was elected executive director. Prior to her election, Harris was special assistant to Vice President Al Gore.

Enron Corp. promoted Cynthia C.

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Metering in Real Time: A New Cost Equation for Electric Utilities

Is it now worth the investment to install smart meters, complete with two-way communication?

The meter has always been the "cash register" in the basic operations of the utility business. Now it is also becoming a vital communications link, carrying information between a utility and its customers. The meter can supply information critical to customer retention and value-added marketing, as well as more effective system operations.

In choosing from among the wide range of metering options available today, a utility should find a technology that fits its business model.

Byline: 
Jack King
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A Merger of Equals

While I read with interest and appreciated your story on electric and natural gas convergence ("Electric/Gas Convergence, Meter to Meter," May 1, 1997, p. 26), I must bring to your attention a misinterpretation concerning the proposed merger of Pacific Enterprises and Enova Corp.

In the second paragraph of your story, you said that Enova "is set to acquire Southern California Gas Co.

Byline: 
George I. Minter
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The Wires Charge: Risk and Rates for the Regulated Distributor

Open-access tariffs hold the key to capturing the gains promised by electric restructuring.

In a restructured electric industry, unbundling the cost of the wires from power generation may well prove more important than dealing with stranded costs. In fact, stranded costs eventually will take care of themselves, whether by direct recovery, indirect recovery or no recovery. Without proper unbundling, however, a restructured industry could force competitors to pay inflated access fees to the distribution utility.

The matter has drawn a lot of attention.

Byline: 
Michael T. Maloney, Robert E. McCormick, & Cleve B. Tyler
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Customers Come First

Bruce Radford's May 15 "Frontlines" (p. 4) commentary on the Sears Tower/QST cogeneration project misses the point. I would like to correct his misconceptions and clarify the issues by looking at them from a marketplace viewpoint rather than a utility-based viewpoint.

First of all, the Sears Tower's savings are more than an "allegation." QST's proposed cogeneration facility for the Sears Tower will reduce the cost of electric power supply to the tower by about $2 million per year compared to what it costs under ComEd's current rates.

Byline: 
J. Mark Elliott
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