Law & Lawyers

Just Say "Maybe" NRECA Still Wary of Competition

A COLORADO COOPERATIVE REMAINS SPLIT FROM THE NRECA and its general manager says a draft resolution against "federally mandated retail wheeling at this time" won't win it back. Stan R. Lewandowski Jr., Intermountain Rural Association's general manager, says the resolution, which will be considered at the National Rural Electric Cooperative Association annual meeting in March, would still make the association sound wishy-washy (see Public Utilities Fortnightly, Nov. 1, 1997, p. 50).

Byline: 
Joseph F. Schuler Jr.
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Energy Choice via Internet Gas Now, Power Later

TWO WEB SITES ARE VYING FOR THE TITLE OF "FIRST Internet-based market for energy," one on the East Coast, the other out West. When last we checked, each traded only in natural gas, but each had plans in the works to expand to include electricity.

STILL TRADING BY PHONE. Southern California Gas Co. and Pacific Gas & Electric Co. went live on Nov. 19 with their on-line, shareholder-funded, "retail shopping center for natural gas," known as Energy Marketplace (www.energymarketplace.com).

Byline: 
Lori M. Rodgers
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Who Shapes Markets? Regulators or Litigants?

NO ONE LIKES TO BE TOLD THAT HE OR SHE ISN'T CEN-

tral to the job at hand. But that was part of the message that Vinod Dar, managing director of Hagler Bailly's restructuring group, told a gathering of state public utility commissioners.

Take electric utility industry restructuring, for example. At the beginning of the game, Dar said, regulators are important because they create the intellectual structure. They are also important at the end game, to codify rules.

Byline: 
Lori M. Rodgers
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Off Peak

SINCE 1994, UTILITY ALLIANCES HAVE DOUBLED ANNUALLY: from 50 that year to more than 300 in 1997.

No longer is an alliance a two-company endeavor. Today's combos involve many partners and objectives, adding skills or products, spreading risk, increasing territory or creating common standards.

According to Andersen Consulting, multi-partner alliances account for an increasing percentage of all utility alliances, from 17 percent in 1994 to 50 percent in 1997.

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How Commodity Markets Drive Gas Pipeline Values

Has rate regulation become obsolete for natural gas pipelines?

On Jan. 30, FERC will hold a public conference to review the financial health of the pipeline industry. It will ask whether its regulatory framework still works; whether pipelines can still attract new capital for investment. Does rate policy threaten the financial integrity of the pipeline industry? That very question may come before the Commission. Nevertheless, FERC need not look far for an answer. If the pipeline industry should lie at risk, the cause may go no farther than the Commission itself. In fact, FERC ratemaking policy for gas transportation service now appears to jeopardize the ability of pipelines to recover costs.
Byline: 

Mary Lashley Barcella

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A Second Opinion on Network Architecture Why a "closed" system is actually "open"

METERING issues can be confusing, especially as they relate to

new technologies and electric deregulation. However, only three guiding principles are needed to protect consumers and to ensure fair competition.

First, consumers need accuracy, safety and reliability. These are ensured through adherence to ANSI C12 standards.

Second, they need public, or "open," access to both meters and communications (with passwords to protect privacy).

Byline: 
Chris S. King
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Testing Share & Load Growth in Competitive Residential Gas Markets

THE RESIDENTIAL MARKET STANDS AS THE NEXT FRONTIER for natural gas unbundling. In California, Illinois, Maryland, Massachusetts, New Jersey, New York, Ohio, Pennsylvania and elsewhere, states have introduced pilot programs and other unbundling efforts to target residential gas consumers. %n1%n

These efforts are hardly surprising. The residential market, presently dominated by the regulated local distribution companies, appears lucrative. In 1995, the residential sector of the U.S.

Byline: 
Alexander Lonshteyn
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Record Gas Demand Means Higher Prices

RDI'S NEW STUDY, THE CONVERGENCE OF GAS AND POWER: Causes and Consequences, projects gas consumption in the United States will grow 2.4 percent per year, or a 26.8-percent increase from 1998 to 2007.

Overall, demand is expected to grow from 20.5 trillion cubic feet in 1998 to 26 Tcf in 2007. More than half of this projected growth will come from electric industry demand for gas, which will increase from 4.1 Tcf in 1998 to 6.9 Tcf in 2007, or 5.3 percent per year.

The jump in gas consumption is linked to the electric industry's limited range of choices for new capacity.

Byline: 
Robert Ineson
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Frontlines

AS YOU CHILL OUT IN YOUR TV CHAIR, WATCHING THE Winter Olympics from Nagano, Japan, think a moment about Kyoto, not far away, and what the climate change treaty might have in store.

On Jan. 8, federal climatologist Tom Karl announced that 1997 was the warmest year on record, with thermometer readings exceeding the mean (1961-90) by 0.42 degrees centigrade (0.75 degrees Fahrenheit). Writing in his World Climate Report, editor Patrick J. Michaels took Karl to task for reporting only half the story.

Byline: 
Bruce W. Radford
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People

THE former chairman of the Missouri Public Service Commission, Karl Zobrist, is now a partner at Blackwell Sanders Matheny Weary & Lombardi LLP.

Zobrist resigned from the commission on Aug. 15, 1997.

Robert C. Kelly, former chairman and CEO of Enron Renewable Energy Corp., was named managing director of renewable energy for Enron International.

Steven J. Lewis joined AEP Energy Services Inc. as senior vice president of energy services. Previously, Lewis managed trading of natural gas and electricity for Duke/Louis Dreyfus LLC.

Michael P.

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