President Clinton

Special Report

EPA inventory opens generators to scrutiny, especially if they burn coal.

Hazardous emissions are one thing. Damaging publicity is something else-especially in the point-and-click world of Internet access.

In the coming year, the fuels that utilities choose to generate electricity will fall under a stronger media microscope. That's when coal- and oil-fired electricity generators must begin reporting information about their accumulated releases of toxic chemicals for 1998.

Solar Mandate? Like it or Not, Consumers Pay

States earmark millions to fund solar projects via system benefits charges.

Making solar power a realistic choice for electric consumers is a burgeoning issue for state utility regulators. As part of electric restructuring, regulators are trying to finance the costs of solar installations.

Key to delivering commercial, on-grid solar power to new markets are state efforts, partnered with other government and industry actions. So far, the system benefits charge, or SBC, is the primary short-term incentive to develop solar, wind, biomass and other renewable resources.

News Digest

Federal Agencies

NOX EMISSIONS. Generating heavy criticism from industry, on September 24 the Environmental Protection Agency released its long-awaited final rules on nitrogen oxide emissions, outlining a plan to reduce NOx by 28 percent by year 2007 in some 22 states and the District of Columbia, with state implementation plans due by September 1999 and controls in place by 2003, to be carried out through a "cap and trade" program to buy and sell NOx emissions credits.

News Digest

State PUCs

STRANDED COST RECOVERY. The Pennsylvania Public Utility Commission allowed Pennsylvania Power & Light Co. to recover $2.9 billion of a requested $4.5 billion in stranded costs, cutting a higher $4-billion allowance proposed earlier by an administrative law judge. The utility petitioned for reconsideration on June 26, after CEO William F. Hecht had called the decision "unacceptable," and noting that the PUC's written order, received June 15, appeared "even more injurious" to the company that the PUC's June 4 bench order.

News Digest

Courts

ENERGY SUPPORT SERVICES. An Illinois appeals court affirmed a 1997 decision by the state commission that had denied authority to Commonwealth Edison to offer "energy support services," such as design, engineering, construction, analysis and management of electrical power equipment and energy systems. The court made this decision despite the utility's argument that no evidence existed to support the commission's finding that ComEd enjoyed a monopolist's advantage over competitors.

People

ENERGY SECRETARY Federico Peña announced April 6 that he was stepping down, effective June 30. Peña plans to pursue other career options in private business and tend to family matters. Peña said he was sure his deputy, Elizabeth Anne Moler, former chairwoman of the Federal Energy Regulatory Commission, was "right up there" on President Clinton's list of potential replacements.

Doris F. Galvin was elected vice president and treasurer of CMS Energy Corp. Galvin has served as vice president and treasurer of Consumers Energy, CMS Energy's principal subsidiary, since 1993.

Ready for CO2 Allowances? U.S. Passes on Emissions Cap, Kyoto or No

FOILING EXPECTATIONS OF BOTH SUPPORTERS AND detractors, the Clinton Administration's proposed electric restructuring legislation offered no new policy on carbon-dioxide emissions, such as a cap-and-trade program similar to that already in place for sulfur dioxide.

But don't breath a sigh of relief. The debate has only begun.

Many observers see the Administration's tactics on CO2 as an obvious attempt to sidestep a highly sensitive political issue. They appear to agree that at some point the Administration must confront CO2 emissions.

The Cost of Reducing SO2 (It?s Higher Than You Think)

LAST YEAR, IN JUSTIFYING THE PROPOSED NEW NATIONAL AMBIENT Air Quality Standards (NAAQS) for particulate matter and ozone, Environmental Protection Agency Administrator Carol Browner testified that: "During the 1990 debates on the Clean Air Act's acid rain program, industry initially projected the costs of an emission allowance¼ to be approximately $1,500¼ Today those allowances are selling for less than $100." %n1%n

Later in 1997, at the White House briefing announcing President Clinton's Global Climate Change Plan, Katie McGinty, chairwoman of the Council on Environmental Quality, sa

Frontlines

WHEN LAST I HEARD, U.N. SECRETARY GENERAL Kofi Annan had reached agreement with Iraqi President Saddam Hussein on weapons inspections, staving off war. But the American Gas Association is still battling the electric industry and the U.S. Department of Energy to save market share for its gas-fired water heaters. This battle is serious.

The water heater war takes in a wide range of issues and players. I hear that ASHRAE (the American Society of Heating, Refrigerating and Air-Conditioning Engineers), has raised gas industry ire with its new proposed standard 90.1.

People

President Clinton appointed James J. Hoecker chair of the Federal Energy Regulatory Commission. Hoecker, former commissioner of the FERC, replaces Elizabeth Moler who was appointed deputy energy secretary at the Department of Energy.

Walter Massey, president of Morehouse College, was selected by Secretary of Energy Federico F. Peña to replace Robert Hanfling as chair of the Secretary of Energy Advisory Board. Also at SEAB, Skila Harris was elected executive director. Prior to her election, Harris was special assistant to Vice President Al Gore.

Enron Corp. promoted Cynthia C.