Arizona Public Service

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.

Utilities File Suit Against Arizona

Arizona Public Service Co. has filed a lawsuit in the Superior Court of Maricopa County to challenge rules adopted by the Arizona Corporation Commission in December 1996 to open the state's electric industry to competition over a four-year period starting in 1999.

Dynamic Scheduling: The Forgotten Issue

But not for long (em as power producers and

customers get more creative in matching plants with loads Dynamic scheduling is a "sleeper" issue in the move toward electric competition. Industry players are debating independent system operators. They are focusing on issues of governance and the form of transmission pricing. Consequently, they are ignoring critical issues concerning ancillary services. These services are not receiving the attention they deserve.

Off Peak

Arizona would wager on electric competition, hedge its bet with a solar portfolio.Looking for a new way to promote renewable energy?

People

Lisa S. Beal was hired by the Interstate Natural Gas Association of America as environmental affairs director. She comes from the Hazardous Waste Management Association, where she was transportation/safety manager.

Commissioner Stan Wise was elected second v.p. of the Southeastern Association of Regulatory Utility Commissioners. Wise is vice chair of the Georgia Public Service Commission.

The City of Anaheim Public Utilities hired Dale Tarkington away from Arizona Public Service Co.

People

Aquila Power Corp., a UtiliCorp United subsidiary, has hired two executives to expand its market into the western United States. Timothy J. Culbertson, from Portland General Electric, will lead power marketing in the Pacific Northwest. David L. Metz will lead power marketing in the Southwest. Metz comes from Arizona Public Service Co.Consolidated Natural Gas Co. has named Bruce E. Plichta international financial analyst and James M. Mulcahy senior financial analyst.

Trends

Gas Garners

Big Share of '95 Fuel Mix

For the second year in a row, natural gas fueled an increasing share of U.S. electric generation. When the final numbers are tabulated for 1995, electric generation is expected to have increased about 2.7 percent over the previous year. This compares to a 0.98-percent increase for the 1993-1994 period. Gas accounted for over 10 percent of the 1995 utility fuel mix (em up from 8.8 percent just two years ago.

IBM, NIPSCO Increase Productivity

Northern Indiana Public Service Co. (NIPSCO) and IBM have developed the Integrity/Customer Services System, which provides any customer service with one telephone call. Customer questions that previously required several transfers will now be handled by a single representative who has access to billing, service, and repair information. Property owners with several buildings or several tenants at one building will receive a combined bill, rather than separate bills for each meter.

Marketing & Competing

When the Salt River Project (SRP) held a series of focus groups in 1994, one participant said he related to our products and services, and felt he received good value for his monthly payments. Unfortunately, a few questions later, we discovered that he did not live in our service area, his bill was higher than he thought, and he wasn't particularly pleased after all.

We were more than a little taken aback.

People

Entergy Corp. has hired John A. Brayman, former president of Ameritech Corp.'s telephone industry services subsidiary in Chicago. Brayman will continue company expansion into nonregulated, domestic energy, and utility-related business as executive v.p. of Entergy Enterprises, Inc. and president of an as-yet unnamed group.J. William Holden was named Southern Electric International's v.p. for operations and development in Latin America and the Caribbean.

GE Supply, a General Electric division, promoted William C. Betke to g.m.