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And wires in the air. Together they form the interstate natural gas pipelines and the electric transmission grid. When the talk turns to deregulation, whether on the gas or the electric side, the pipelines and the transmission grid are almost always voted "most likely to." That is, to remain regulated monopolies (em with cost-of-service rates protected by the Federal Energy Regulatory Commission (FERC).

Let's have a look at that idea.

The FERC has unbundled gas commodity sales from pipeline transportation.

Commentary: Making Restructuring ProfitableRalph Cavanagh

Investments that minimize life-cycle costs of reliable energy services should be more profitable to utilities than those that fail that test. This perceptive article shows that Puget Power and the Washington Utilities and Transportation Commission (UTC) share that view.Too many utilities still hesitate to finance energy savings that cost less than the displaced power production.

Conn. Updates Gas Regulation

The Connecticut Department of Public Utility Control (DPUC) has adopted new cost-of-service guidelines allowing natural gas local distribution companies (LDCs) to develop unbundled rate structures, including cost-based firm transportation rates. The DPUC also issued suggestions for refining existing supply and demand forecasting methods. According to the DPUC, current cost-of-service studies did not adequately address interclass subsidies at existing rate levels.

Ontario Faults Gas DSM Plan

While setting rates for Union Gas Ltd., a natural gas local distribution company (LDC), the Ontario Energy Board found the LDC's demand-side management (DSM) plan deficient and ordered shareholders to bear the cost of any required remedies. The Board found, however, that denying the DSM budget would make it harder for the LDC to accomplish energy conservation and environmental objectives and, would run contrary to the public interest.

Electric Industry Restructuring: The States Forge Ahead

About 30 states have begun (em

either through the legislature, the utility commission, informal working groups, or some combination of these (em to consider issues such as retail wheeling, unbundled utility structures, and alternative rate regulation.1 California's "Blue Book" hearings have drawn the most attention, but significant efforts are also underway elsewhere. Although each state is approaching the issue in its own way, successful industry restructuring will ultimately require coordination across state lines.

People

The Interstate Natural Gas Association has appointed Terry D. Boss v.p. of environment, safety, and operations. Boss replaces Theodore L. Kinne, who has retired.

R. Paul Grady has resigned as v.p. of corporate development with UGI Corp., a holding company with utility and propane marketing subsidiaries, to become v.p. of sales and operations at its wholly-owned subsidiary AmeriGas Propane, Inc.

Western Fuels Association, Inc. has reelected the following board members: Robert L.

California DSM: A Pyrrhic Victory for Energy Efficiency?

California has led the nation in utility expenditures for ratepayer-subsidized energy conservation, also called

demand-side management (DSM).1

With broad-based support from utilities, consumer representatives, environmentalists, the California Public Utilities Commission (CPUC), and the California Energy Commission (CEC), some $1.8 billion has been spent since 1990 (and $

Gas DSM Plan Found Deficient

While setting rates for Union Gas Ltd., a natural gas local distribution company (LDC), the Ontario Energy Board has found the company's demand-side management (DSM) plan deficient, and required shareholders to pay for any required remedies. The Board added, however, that denial of the DSM budget would be contrary to the public interest.

It said that the plan as presented was "essentially a marketing plan" for supplying energy efficiency goods and services (em one that fell short of DSM guidelines.

FERC Flipflops on Great Lakes Case

Does it make good business sense to offer a service that brings in considerable revenue but virtually no profit?

In the past, special circumstances explained why local distribution companies (LDCs) sold natural gas to customers without earning a profit. But circumstances have changed.