The American Arbitration Association, in response to a growing level of interest by the electric and natural gas industries, has established the "National Energy Panel" to resolve disputes through mediation and arbitration.
The new panel is composed of 33 of the nation's leading energy industry experts and will resolve a range of disputes involving production, contracts, finance and marketing.
California's three largest investor-owned utilities have asked the California Public Utilities Commission to approve securitization of up to $7.3 billion of stranded costs.
The utilities would issue 10-year bonds through the state infrastructure bank starting by the end of 1997. The "rate reduction bonds" would be repaid through a stranded cost charge levied on present ratepayers. The amounts applied for are: $3.5 billion by Pacific Gas & Electric; $800 million by San Diego Gas & Electric Co.; and $3 billion by Southern California Edison Co.
Oklahoma Gov. Frank Keating has signed into law the "Electric Restructuring Act of 1997," S.B. 500, which allows customers choice of electric suppliers by July 1, 2002.
The legislation was written by state Sen. Kevin Easley (D), who originally had called for competition by 2000. The new law calls for the Oklahoma
Corporation Commission to resolve issues surrounding stranded costs.
According to Keating, "[Deregulation] should help strengthen our economic development position when we're in competition with other states for jobs."
Orange & Rockland Utilities Inc. and Central Hudson Gas and Electric Corp. have submitted their restructuring plans to the New York Public Service Commission as part of the commission's efforts to develop a new framework for the electric industry in the state's "Competitive Opportunities" proceeding.
Orange & Rockland's four-year proposal would reduce overall rates by $37 million (Case 97034/ 96E0900). Industrial customers would pay an average electric price of 6 cents per kilowatt-hour.
The California Public Utilities Commission has ruled that it will not phase in direct access at different times for different customer groups, but will allow all customers, regardless of classification or amount of electricity used, to choose their energy supplier in less than two years.
"There will be no phase-in or pilot-program period for the opening of California's electricity market. In just eight months we go from a regulated monopoly to open competition in one big bang," said John Seidl, president and CEO of CellNet Data Systems Inc.
The PUC said that starting Jan.
Two studies examine marketers and direct-access pilots. Customers seen as "confused," dissatisfied," "frustrated."
The Edison Electric Institute has released two studies that examine increased competition in electric markets. One looks at the rapid growth of the power marketing industry, while the other examines the problems encountered by the first six retail access pilot programs in the U.S.
Power Marketers.
Central Vermont Public Service Corp. hired former Electrolux Corp. CFO Douglas D. Sinclair as its marketing and business development v.p. and general manager. In addition to his new position, Sinclair will oversee day-to-day activities at two power generation and technology subsidiaries. Also at CV, Robert G. Clarke, president of Vermont Technical College, and Patrick J. Martin, president of America's Customer Operations at Xerox Corp., were elected to the board of directors.
John F. Cotter, former PECO Energy Co. power trader, was hired by Pennsylvania Power & Light Co.
Speaking on June 11 in Washington, D.C., at a symposium sponsored by the Institute of Electrical and Electronics Engineers, Rep. dan Schaefer (R-Colo.) was heard to say that he would have his electric restructuring bill out of committee by the end of July. He said his bill would mandate electric competition by 2000--just the sort of deadline that Texas Public Utility Commission Chair Robert Gee likes to call a "Hong Kong" clause.
Will the millennium bring the dawn of customer choice? Here we are, halfway through 1997. Hong Kong is now Chinese, but in America we are still ratepayers.
By unbundling usage from access, utilities can maximize contribution to margin and yet still retain load.
With deregulation and industry restructuring, energy utilities face price competition from marketers, brokers, independent producers and even other utilities. To succeed in this environment, utilities will need to develop innovative pricing strategies that better meet customer needs and respond more effectively to competition. The common response by utilities to competition calls for price discounting to retain "at risk"
customers by meeting the competition head-on.
Subsidies? Maybe. But how about reciprocity? Should Congress let PMAs, munis and co-ops decline open access?
Until recently, most congressional debate on utility deregulation has focused on the future of investor-owned utilities and independent power producers and marketers. Lobbyists for government-owned or cooperative-owned power companies have tried to downplay their clients or to seek exemptions.