Pacific Gas and Electric Co. (PG&E) and Destec Energy Inc. have entered into the nation's first comprehensive transmission and services agreement between a utility and a power marketer. The deal will allow Destec's power marketing subsidiary, Destec Power Services Inc. (DPS), to pool electricity and wholesale it directly using PG&E's transmission lines. A request for plan approval was filed at the Federal Energy Regulatory Commission on December 6.
Revolutions rarely succeed without a struggle. At the California Public Utilities Commission (CPUC), the move to restructure the state's electric utility industry is no exception. The stakes are enormous. For starters, annual revenues at the state's investor-owned electric utilities (IOUs) exceed $18 billion, making up
2 percent of California's gross state product. Competitively priced electricity is vital to California's $800-billion-a-year economy, one would think.