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.
Peter B. Lilly has been named president and COO of Peabody Holding Co. Peabody is the world's largest private producer and marketer of coal. Lilly will continue to report to Irl F. Englehardt, Peabody Holding's chairman and CEO. Englehardt was recently named v.p. of Hanson Industries' energy group.The board of directors of The Dayton Power & Light Co. has elected Arthur G. Meyer treasurer.
IES Utilities, Inc. has named James E. Hoffman executive v.p. of customer service and energy delivery.
Erroll B. Davis, Jr.
President & CEO
Wisconsin Power & Light Co.
WP&L advocates that the following steps be taken to create a level playing field for merchants entering the retail market:
s Distribution rates should be fully unbundled from retail sales tariff rates.
Stephen P. Reynolds
President & CEO
Pacific Gas Transmission Co.
Standardization has been an issue in every industry since the beginning of the Machine Age. As products continue to evolve, we need something like GISB to help find a prudent and appropriate level of standardization.
Erroll B.
The profound changes now occurring in the electric industry will most directly affect those who are engaged in the enterprises of generation, transmission, and distribution of power. But challenges and opportunities confront gas companies as well. Certainly, the electric industry will continue to influence markets for gas: both in bulk fuel supply and in retail energy.
The Indiana Utility Regulatory Commission (URC) has denied an Indiana Gas Co., Inc. request for rate recovery of environmental costs associated with three of its instate manufactured gas plant (MGP) sites. The URC found that the local distribution company (LDC) had assumed the associated environmental liability in purchasing the properties, and that the costs were not related to providing gas service to current ratepayers.
While setting a new gas cost adjustment rate for Delmarva Power & Light Co., a combined electric and gas utility, the Delaware Public Service Commission (PSC) found the utility's unaccounted-for-gas incentive program unnecessary because it had accomplished its objective, as evidenced by a steady decline in the rate of unaccounted-for gas. The PSC approved a $300,000 incentive award for the current adjustment. Re Delmarva Power & Light Co., PSC Dkt. No. 94-123F, March 21, 1995 (Del.P.S.C.).In another case, the PSC allowed Chesapeake Utilities Corp.
For a good half a century, electric regulation has meant law, accounting, and economics. But no more. Now it's all about computers, telecommunications, and file-transfer protocols. Forget about CWIP, AFUDC, double leverage, and interest synchronization. They are all irrelevant.
Are utilities working at top productive capacity? A novel look at 19 investor-owned electrics in the Sun Belt.
Major restructuring is expected to hit investor-owned utilities (IOUs) over the next decade. Competitive market forces, in place of rate-of-return regulation, will require many companies to evaluate their resource allocations. No longer will singular adjustments in resource use suffice when both capital and labor resources must be realigned.