Transmission & ISOs
Policing the Markets
The California ISO offers a plan, but some fear that rules themselves are the problem.
How Colorado's settlement in the Xcel merger builds a case for treating needy ratepayers as a separate class entitled to merger benefits.
Telecoms may offer IOUs a model for multiplying market caps by dividing their shareholdings.
April 1, 2000
Retail Energy Choice. At press time, Virginia issued proposed interim rules governing pilot programs for electric retail competition in electricity and natural gas, with comments due Feb. 24. The interim rules were not expected to resolve all issues, but only to provide a starting point to gain experience.
Among other points, the interim rules would require utilities to make information available through electronic bulletin boards on availability of commodity supply, ancillary services, and transmission and distribution capacity. Case No.
T+D Investment Risk. The Maine PUC appeared to take a pro-consumer stance in setting principles it will use to set a revenue requirement for transmission and distribution (T&D) services provided by Bangor Hydro-Electric Co. after the company becomes a wires-only utility on March 1. The PUC downplayed the risk of wires operations, adopting a return on equity of 11 percent and disallowing about $3.5 million of some $71 million in claimed T&D costs.
Weighing the outlook for new plant investment in gas-fired power and related infrastructure.
The jury is still out on the type and size of additional energy infrastructure desirable in the Northeast United States, but enough data is in to make a few guarded observations.
The situation is fluid.
Mergers & Acquisitions
Joint Ventures. The Federal Trade Commission, in consultation with the Antitrust Division of the U.S. Department of Justice, issued draft antitrust guidelines for "collaborations among competitors" that will apply to a wide range of joint ventures and strategic alliances other than actual mergers.
Such collaborations would include R&D efforts, information sharing and joint efforts in marketing, distribution, sales or purchasing, plus various types of trade association activities. File No. 971201, Oct. 1, 1999 (F.T.C.), published at 64 Fed. Reg.