Commission

Merchant Mania: Regional Markets Draw Gen Plant Projects

Developers launch 70,000 MW of new capacity in Texas, PJM and New York state, but how much will get built?

It's so hot down here, it isn't funny," laughed Ken Donohoo, senior transmission systems engineer at the Electric Reliability Council of Texas independent system operator. But no, he wasn't talking about last summer's scorching temperatures.

Instead, Donohoo was referring to some 30,000-plus megawatts of generation capacity proposed to be built in ERCOT between 2001 and 2003.

Northeast Energy Markets: Windfall or Washout?

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.

Off Peak

What we're not arguing about is important too.

More than 200 organizations and individuals have staked out positions in comments filed with the Federal Energy Regulatory Commission, in response to its proposed rulemaking on regional transmission organizations (RTOs).

The major debate in the reply briefs is on three issues.

Mandatory vs. Voluntary Participation? The FERC's proposed rulemaking relies on strong RTOs rising spontaneously from the primeval murk of the conflicting interests of the states and industry participants.

Wisconsin Forges Grid Model

Transco law opens the door to munis and co-ops.

As the electric industry awaits a final rule from the Federal Energy Regulatory Commission on regional transmission organizations, Wisconsin has moved to create its own stand-alone transmission company, or transco.

In the process, Wisconsin will allow grid-dependent utilities to get a piece of the action.

The Legislation. On Oct. 27, Wisconsin Gov. Tommy Thompson signed Assembly Bill 133, an omnibus budget bill that incorporated original Assembly Bill 389.

News Digest

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.

People

Cinergy Corp. named Sherrie N. Rutherford vice president of special projects for Cinergy Services Inc. Rutherford formerly served as vice president and general counsel for the pipeline group and trading operations, and associate general counsel for Reliant Energy Wholesale Group.

Philip R. Sharp, a former Indiana Congressman, will serve as advisor on consumer choice and energy deregulation at Columbia Energy Group. Sharp is a lecturer in public policy at Harvard University's John F. Kennedy School of Government and a member of the U.S. Secretary of Energy's Advisory Board.

Frontlines

State regulators turn to telecom to salvage the clout they've lost in energy.

State public utility commissions now seem to spend more time on telecommunications than electricity or natural gas. That's their new power base. The telephone local loop marks the one place where state regulators still have clout.

To test that notion, let's see who attended last month's annual meeting of the National Association of Regulatory Utility Commissioners, held in San Antonio. By my count, out of the first 500 registered attendees, over 120 (24 percent) came from telecommunications firms.

News Digest

State PUCs

Electric Standard Offers. Connecticut OK'd a regulated standard offer distribution rate of 10.84 cents per kilowatt-hour for United Illuminating Co. The rate included subcomponent rates:

Gen. Shopping Credit 4.52 cents

T&D Regulated Service 3.89 cents

Systems Benefit Charge 0.17 cents

Compet. Transition Charge 1.91 cents

Conservation Funding 0.3 cents

Renewable Energy Funding 0.05 cents

The T&D charge was calculated without backing out unbundled retail transmission subject to FERC jurisdiction. Docket No. 99-03-35, Oct.

People

The Federal Energy Regulatory Commission appointed Bud Earley policy advisor on electric matters. Earley most recently served as director of the electric policy division of the FERC's Office of Economic Policy. The FERC named Bobbie J. McCartney an administrative law judge. She previously served as deputy chief administrative law judge in the Social Security Administration's Office of Hearings and Appeals.

The Bonneville Power Administration named Jeff Stier its new vice president of national relations. Stier joins BPA after 12 years on the staff of Rep.

Frontlines

But does anyone know the real price of power?

You've read the headlines from Maine - how regulators asked for bids for competitive electricity but got prices higher than the old regulated rate.

But it gets worse. The more open the market, the higher the bid.

Central Maine Power and Bangor Hydro-Electric operate within ISO New England, which now is open for competition.