GE

Primergy Merger Raises Claims of Market Power

Madison Gas and Electric Co. (MGE) has asked the Federal Energy Regulatory Commission (FERC) not to approve the proposed merger of Wisconsin Energy Corp. (WE) and Northern States Power Co. (NSP) to form "Primergy." MGE claims that the merger would not only subject Wisconsin's electric consumers to higher prices, but severely impair competition.

According to Mark Williamson, MGE senior vice president of energy services, the Primergy merger would create market concentration in generation and transmission, resulting in market power abuses and anticompetitive conduct.

Joules

United Parcel Service of America, Inc. (UPS) and Duke/Louis Dreyfus, LLC have struck a two-year deal to seek ways of lowering energy costs at UPS locations in 14 states.

Tokyo Electric Power Co. awarded a $500-million contract to GE Power Systems to design and build a 1,400-Mw advanced combined-cycle power plant. GE will supply four gas turbines, four steam turbines, and four generators. Additional equipment and services will be supplied by Foster Wheeler and three Japanese companies.

Trends

Over the past two and a half years, 10 large mergers have been announced, involving 21 investor-owned electric and gas utilities. Only the MidAmerican Energy merger has been completed, but the estimated market value of the pending mergers is an astounding $40.5 billion. Clearly, this recent wave of merger and acquisition (M&A) activity signals that electric utilities are positioning themselves for future competitive energy markets.

Results from Resource Data International's (RDI's) recent study, U.S.

People

Richard D. Spencer, lately of General Electric Corp., has been hired by Equitable Resources, Inc. as v.p. and chief information officer. He was technology programs manager at GE.

Commonwealth Edison Co. has formed a new nuclear division management team. Thomas J. Maiman, senior v.p., is the top executive. He moves from the company's fossil division. Michael J. Wallace, another senior v.p., will market the utility on strategic nuclear business issues.

NRC OK's Trojan Decommissioning Plan

The Nuclear Regulatory Commission has approved Portland General Electric Co.'s (PGE's) decommissioning plan for the Trojan nuclear power plant. The Trojan plant, which began operating in 1975, was permanently shut down in January 1993. PGE filed its decommissioning plan in January 1995, proposing to move the spent fuel to onsite dry cask storage, dismantle radioactive structures, and decontaminate the site for unrestricted use (except for the dry-cask storage area). t

Lori A. Burkhart is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.

LG&E Withdraws from EEI

LG&E Energy Corp. and subsidiary Louisville Gas and Electric Co. (LGE) have withdrawn from the Edison Electric Institute (EEI) over the issue of electric restructuring.

In a letter to EEI president Thomas Kuhn, LG&E chairman and CEO Roger Hale said that LG&E advocates competition and retail access at the earliest possible date through federal legislation.

California IOUs Draft FERC Filings

The three largest California investor-owned utilities (IOUs) (em Pacific Gas and Electric Co., San Diego Gas & Electric Co. (SDGE), and Southern California Edison Co. (SCE) have circulated for comment working drafts of future Federal Energy Regulatory Commission (FERC) filings concerning a deregulated electricity industry.

One 150-page proposal asks that operational dispatch control of transmission facilities be conveyed to an ISO, beginning January 1, 1998.

People

Aquila Power Corp., a UtiliCorp United subsidiary, has hired two executives to expand its market into the western United States. Timothy J. Culbertson, from Portland General Electric, will lead power marketing in the Pacific Northwest. David L. Metz will lead power marketing in the Southwest. Metz comes from Arizona Public Service Co.Consolidated Natural Gas Co. has named Bruce E. Plichta international financial analyst and James M. Mulcahy senior financial analyst.

People

Peter C. Nelson was named president and CEO of California Water Service Co. Nelson also will be a director. He comes from Pacific Gas & Electric Co., where he was v.p.-division operations. He replaces the retiring Donald L. Houck.

Jack Lucido of ANR Pipeline Co. was elected to the American Gas Association's pipeline research committee, succeeding Gary Walker of Pacific Transmission Co.

The Electric Power Research Institute hired Karl G. Van Orsdol as senior manager, international relations.