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Law & Lawyers

NRDC, Others, Ask FERC to Rethink Pollution

A unique force of 25 environmental and energy/utility companies have joined together and filed comments on the Federal Energy Regulatory Commission (FERC) Notice of Proposed Rulemaking on open-access electric transmission (Mega-NOPR), and the subsequent draft environmental impact statement (EIS), asking the FERC to mitigate the air-pollution impact of plans to promote wholesale electric competition and open access to utility transmission lines.

The parties urge the FERC to link its open-access policy with an environmental strategy that reduces air pollution at the g

Byline: 
Lori A. Burkhart
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FERC Signals Flexibility on Open-Acces Problems

The Federal Energy Regulatory Commission (FERC) has approved a series of orders clarifying that it will not deny or revoke market-based, wholesale electric rates for utilities or their marketing affiliates without first allowing them to correct defects in their open-access transmission tariffs (Docket Nos. ER94-1045-000 et al., Feb. 14, 1996).

Utilities with existing market-based rates (or affiliates with such rates) will have 15 days to refine their open-access tariffs after the FERC identifies a problem (em only then will market-based rates be revoked.

Byline: 
Lori A. Burkhart
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The Gas Storage Market: What Does it Tell Us?

The authors asked pipelines

and LDCs how they used storage.

Leasing activity proved a surprise.

Since deregulation, the natural gas industry has seen tremendous changes in every sector. Competitive pressures have reorganized business strategies so much that only those firms that adapt will survive. One area that stands ripe for change is the natural gas storage market.

Why build gas storage fields?

Byline: 
Ruth K. Kreschmer and Agustin J. Ros
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Trends

Curbing Market Power:

The Larger, the Better

In recent years, increased competition and the threat of deregulation have spurred numerous mergers and acquisitions. Fourteen mergers have been completed by investor-owned utilities (IOUs) over the last five years; seven more have been announced. If all of these mergers receive approval, nearly 20 percent of the IOUs that existed in 1990 will no longer exist.

Byline: 
Christopher D. Seiple and Douglas M. Logan
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Mailbag

Forecasts Send ROEs Wide of the Mark

In a recent "Offpeak" ("Forecasting is Just That," Jan. 1, 1996, p. 54), David Foti and Clay Denton report data showing the percentage of error found in various seven-year forecasts of natural gas prices (1988-94) produced by the American Gas Association (A.G.A.), Energy Information Administration (EIA), DRI/McGraw-Hill (DRI), Gas Research Institute, and WEFA Group. These errors ranged from approximately 50 to 95 percent.

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People

Carter T. Funk was promoted to v.p.-business and operations services at Consolidated Natural Gas Co. He moves up from v.p.-asset acquisition and resource development at CNG Energy Services.

Marian M. Davenport was promoted to v.p., general counsel, and secretary for Destec Energy, Inc. She replaces Stephen R. Wright, who retired.

Central and South West Corp. has elected Jim Ellis, chairman and CEO of SEEBOARD plc, to its board of directors.

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Frontlines

Lately I'm reading up on the new Telecommunications Act. Last week I printed a copy from the Internet and stuffed it in my briefcase. Each night on the train I give it a go and skim a few sections.

The new law unabashedly favors competition over regulation, but appoints state commissions (PUCs) to certify when that competition may be deemed effective enough to open markets. Thus, the PUCs will take at least one last shot at managing markets before they relax regulation for competitive services.

Byline: 
Bruce W. Radford
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Energy Service Companies: No More Mr. Niche Guy

The larger companies are winning more business. But how will

they fit into a restructured industry?

Put 45 energy service companies (ESCos) into a $1-billion market, and they easily average over $20 million each. That's almost four dozen companies exploiting a niche an eighth the size of the microprocessor industry.

So it's easy to understand why new ESCos, half with utility roots, enter the fray weekly.

Byline: 
Joseph F. Schuler, Jr.
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NARUC in Winter

Resolutions generated heat (electricity) and warmth

(telecommunications, environment).

State utility commissioners have gone on record asking Congress to "call them first" before it legislatively restructures the electric industry.

That resolution prompted some of the liveliest debate at the National Association of Regulatory Utility Commissioners' (NARUC) Winter Committee meetings. About 1,000 people attended the 10-day event in Washington, DC, February 21 to March 1.

Byline: 
Joseph F. Schuler, Jr.
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