California regulators have issued a series of important rulings this spring as they continue to move forward with restructuring the state's electric utility industry.
On May 6, the California Public Utilities Commission accelerated the pace of its industry reform by ordering all electric utilities in the state to allow direct access to alternate electricity suppliers for all customers on Jan. 1, 1998.
Duff & Phelps Credit Rating Co. has released a report advising that a properly structured plan for securitization of stranded utility investment should address third-party credit risk.
El Paso Energy Marketing hired Kathy Eisbrenner as senior v.p. Eisbrenner previously was with LG&E Natural Inc.
Cameron Raether, XENERGY senior consultant, was elected to the board of the Power Association of Northern California. Raether serves as chair on several boards and specializes in market evaluations for large electric and natural gas end users.
Robert G. Edwards was elected v.p. at Columbia Division of SCANA Energy Marketing Inc. Edwards joined SCANA in 1992 as a gas sales representative and has held various marketing positions.
Enova/PE merger finds
California utilities learning
how to "micro-unbundle."
here's a meter war ticking away out West, pitting natural gas against electricity.
Enova Corp. is set to acquire Southern California Gas Co. through a merger with the gas utility's parent company, Pacific Enterprises. This strategy raises a tantalizing question: Can the new, merged company sell electricity "through" SoCalGas meters, using customer contacts on the gas side to grab market share in electricity from Southern California Edison, whose territory overlaps that of SoCalGas?
PUC endorses direct access, plant divestiture and limits on recovery of stranded costs. Says order will not interfere with 1990 bankruptcy plan for Northeast Utilities. The New Hampshire Public Utilities Commission has issued its final plan for restructuring the state's electric industry, at the same time announcing what is believed to be the first formal policy decision by a state utility commission that would deny full recovery of costs left "stranded" by the transition to competition.
Released on Feb.
Sound bites from state and federal regulators.
Gas Supply Affiliates. Arkansas oks plan by Arkla to continue to rely on NorAm Gas Transmission Co. (an affiliate) for the bulk of its supply requirements, but directs the utility to evaluate its supply options and to "be prepared" to shift to an independent supplier for gas inventory and capacity. NorAm agreed to "rachet-down" its price to meet third-party offers. Docket No. 95-401-U, Order No. 34, Jan. 9, 1997 (Ark.P.S.C.).
Electronic Billing. Michigan regulators approve program by Consumers Power Co.
s The technology is digital.
s The medium is cyberspace. The product is a strategic system for billing, collection and customer services (BCCS) that integrates knowledge and choice through an automated customer interface.
The impending obliteration of the business boundaries between the gas, electric and other energy industries will launch a series of convergent waves of change. Executives, regulators, legislators, investors and, naturally, consumers must ride this wave over the next 10 to 15 years.
Load Aggregation:
The Wolf at the Door?
Of course, there's nothing to stop a utility from aggregating its own customers.
WHAT, EXACTLY, IS LOAD "AGGREGATION?" Is it a threat, an opportunity, or merely a sales tactic?
Actions taken in California, as well as in pilot programs across the country, place customer aggregation on the leading edge of efforts to pull native load from electric utilities.
Ironically, present-day utilities already "aggregate" their customers (em albeit into a single group.
How the electric industry uses DSM and IRP to build load, ignoring basic truths found in fuel-cycle analysis.It was during the early 19th century that General von Clausewitz announced his nine principles of warfare.
Competition
at the Meter: Lessons
From the U.K.Metering lies at the heart of electric competition, but may work best as a "natural" monopoly controlled by the distribution utility.Metering represents one of the more complex issues in retail electric competition (em one that suffers from major misperceptions.