AS A FOLLOW UP TO OUR APRIL 1 ARTICLE ON CANADIAN-U.S. energy convergence, Public Utilities Fortnightly interviewed Ontario Energy Minister Jim Wilson to find out what's in store for the province as it moves ahead with restructuring its electricity industry.
April 01, 1998
WHICH NUCLEAR PLANTS WILL SURVIVE competition? To answer that question, senior managers at electric utilities must know a nuclear plant's true economic potential. Without an accurate understanding of operating economics, a utility might lose a good plant or waste resources on poorer plants that should be closed.
Of course, a shutdown may be appropriate at some plants (em perhaps a few situated in the most competitive regions, or others plagued by poor inherent physical characteristics. However, most U.S.
PITTSBURGH CHALLENGES MERGER; ALLEGES COLLUSION
The city of Pittsburgh has filed an antitrust lawsuit against Allegheny Power Systems Inc., and Duquesne Light Co., to stop the merger proposed by the two companies.
In its Sept. 29 court filing, Pittsburgh claimed the two utilities acted jointly to restrain trade. The city said the companies did this by agreeing to maintain higher rates for electric retail service at two industrial sites targeted for redevelopment zones pending their merger.
No one needs to tell the readers of PUBLIC UTILITIES FORTNIGHTLY about the technical, economic, regulatory, and institutional obstacle course facing the nuclear power industry. All you need do is look around to see an industry struggling to live up to expectations. Some would term the nuclear outlook "grim:"
• No economic incentives to build new nuclear plants.
• No new plant orders in the United States (a modest complement of foreign orders)
• Precious few attempts to renew operating licenses; even fewer succeed.
With little fanfare, most aspects of the U.S. energy system seem to have settled into a fairly stable, predictable pattern. To my mind, we have reached an "energy plateau" likely to persist for maybe a decade or more into the future.
Energy is not now high on the radar screen of the general public, so there is little public pressure for significant change in the U.S. energy system.