National Association of Regulatory Utility Commissioners

Electric Restructuring: Before, During and After

Five commission chairs from states in all phases of deregulation ponder their changing roles. Will market success make them obsolete?

As most state electric competition plans are implemented within the next few years, regulators face an uncertain future. And they're already reflecting on their role in a changing industry.

Regulatory commissions in both Illinois and California have created panels to discuss the issue and the National Association of Regulatory Utility Commissioners (NARUC) has held closed-door sessions on the subject.

People

Commissioner Lauren "Bubba" McDonald of the Georgia Public Service Commission was appointed to a three-year term on the National Association of Regulatory Utility Commissioners' (NARUC) Committee on Electricity.

Peabody Group named Jiri Nemec, previously group executive of Northern Appalachian operations, group executive of Midwest operations. Nemec replaced Mathew A. Haaga, who resigned. James A. Beck Jr., previously group executive of Southern Appalachian operations, was appointed to oversee all of Peabody's Appalachian operations in West Virginia.

David W.

People

Bob Rowe of the Montana Public Service Commission was elected first vice president of the National Association of Regulatory Utility Commissioners. Rowe will continue to serve as chairman of the NARUC Telecommunications Committee for another year.

Duane, Morris & Heckscher LLP added Regina Speed-Bost to its energy group. Speed-Bost is the former legal advisor for natural gas and oil pipeline matters to William L. Massey, commissioner, Federal Energy Regulatory Commission.

Charles K.

News Digest

Studies and Reports

Natural Gas Retail Choice. Utility affiliates hold large market shares in natural gas customer choice programs, raising questions about the extent of true competition, according to a study released on Dec. 15 by the U.S. General Accounting Office. Participation varies by region, however, according to the report, "Energy Deregulation - Status of Natural Gas Customer Choice Programs."

In Pennsylvania, for example, three out of four programs showed very high shares for utility affiliates. The Equitable Gas Co.

Special Report

Hoecker, Trebing see advantages in economies of scale.

Will New York's proposed independent system operator fall victim to the FERC's evolving RTO process?

"It has some conceivable drawbacks," FERC Chairman James J. Hoecker told attendees at the 30th Annual Institute of Public Utilities Conference. "One is that it's a single-state ISO and in the final analysis, regional transmission organizations probably need to cover broader geographical areas."

Hoecker used the forum at the Dec.

Electric Restructuring Legislation: Handicapping the 106th Congress

Will inaction in the Senate and House prompt FERC to move ahead?

About 36 bills with the word "electric" in them were introduced in the 105th Congress. According to Capitol Hill and industry association staff, the 106th Congress, officially begun Jan. 6, appears likely to see fewer restructuring bills, but steadfast champions.

Likelier still are developments outside of Congress that will shape energy policy and perhaps beat legislators to the punch.

Score a Deal? 20-Odd Mergers in Search of a Policy

As utility takeovers break new ground, the FERC ponders proposed rules, perhaps already out of date.

A year ago, when U.S. Antitrust Czar Joel Klein talked of a "window of opportunity" for electric utility mergers, he didn't predict when it would close.

And it hasn't yet.

In the 12 months leading up to January 1998, when Klein had addressed the Federal Energy Regulatory Commission through its "Distinguished Speakers" series, only the ill-timed Primergy deal had been turned down. The next year, 1998, would prove no different.

Utility Marketing Affiliates: A Survey of Standards on Brand Leveraging and Codes of Conduct

No clear consensus has emerged. Should regulators hold to a hard line?

Regulators have wrestled for decades with transactions between vertically integrated monopoly utilities and their corporate affiliates.

Most problems have usually involved a shifting of costs, risk, or profit, as when an electric utility buys coal from a subsidiary. On the telephone side, AT&T's equipment dealings with Western Electric and Bell Labs were always a worry for regulators.

News Digest

State PUCs

ISO GUIDELINES. Marking a contrast with California, but lining up with states in the Northeast, the Iowa Utilities Board has urged that independent system operators should have authority to order redispatch to help fulfill service requirements for electric transmission. That rule came as part of a set of principles issued by the board to guide the formation of ISOs in managing electric transmission systems and preventing the exercise of market power.

Market Power Still Hot

THE FEDERAL ENERGY REGULATORY COMMISSION met Aug. 14 in Chicago to address complaints filed concerning late-June electric price spikes in the Midwest, which saw prices climb a high as $7,000 per megawatt-hour.

Back in July, Commissioner James Hoecker had noted, "We need to know what led to the price spikes, and what ¼ this tells us about emergency market behaviors." He added: "We foresee a growing role for this commission in monitoring market performance."

But while the FERC debated, a shakeout loomed.

Debate at the Meeting

Charles E.