Potomac Electric Power
Mergers & Acquisitions
NSP + New Century. The Federal Energy Regulatory Commission OK'd the merger of Northern States Power Co. (NSP) and New Century Energies Inc. (NCE), to form Xcel Energy Inc., on condition that the new company would join the Midwest Independent System Operator. FERC Docket No. EC99-101- 000, Jan. 12, 2000, 90 FERC ¶61,020.
* Rate Pancaking. The FERC found no problem with transmission rate pancaking with the MISO condition, even though NCE subsidiary Southwestern Public Service Co. (SPS) belongs to the rival Southwest Power Pool.
Gas Retail Rate Design. In a move toward equalizing rates of return between customer classes, the Oregon PUC authorized Northwest Natural Gas Co. to increase base rates by nearly $246,000, at the same time boosting residential rates by 1.3 percent but lowering rates for large commercial and industrial users. It set return on equity at 10.25 percent, finding the rate "consistent with the downward trend of ROEs authorized by other regulatory commissions." Order No. 99-697, Nov. 12, 1999 (Ore.P.U.C.).
A retiree from Kansas writes the FERC to ask why it lets utilities "punish" their customers.
When senior citizens with time on their hands start taking an interest in utility regulation, you just know that's big trouble for bureaucrats. Ask James Hoecker, chairman of the U.S. Federal Energy Regulatory Commission.
Last month Hoecker opened his email box to find a short message from one Hersch Davis, a retiree from Wichita, Kan. Davis wrote the chairman on Sept.
Eight states blame upwind sources. Agency to revisit emissions targets.
The U.S. Environmental Protection Agency's Sept. 24 rule for 22 eastern states to file plans to reduce nitrogen oxide emissions would ostensibly reduce transport of ground-level ozone, or smog, in so-called "nonattainment areas." But eight of these affected states have filed petitions arguing that NOx emissions blowing in from nearby jurisdictions must be controlled before they can comply.
So far, in preliminary statements, the EPA has indicated that at least some of these petitions have merit.
As utility takeovers break new ground, the FERC ponders proposed rules, perhaps already out of date.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.
IN A RECENT SPEECH TO A SOPHISTICATED WASHINGTON AUDIence of electric industry players, FERC Commissioner William Massey raised a difficult question: "Can ISOs become self-policing institutions, thereby allowing FERC to embrace light-handed regulation of transmission?"
In answering his own question, Massey confirmed a quasi-judicial role for independent system operators (em but only if they are "equipped with proper operational rules, including market monitoring plans that report market power abuses and contemplate enforcement mechanisms to assure compliance." %n1%n
Despite such op