No clear signal as yet from new chair James Hoecker.
The Federal Energy Regulatory Commission had a busy day on July 30, but observers will have to wait until the fall to learn of any new wide-ranging policy initiatives planned by incoming chair James Hoecker, who has now succeeded Elizabeth Moler in the top post.
The end-of-summer meeting (em and Commissioner Donald F. Santa Jr.'s last (em was marked largely by a lack of controversy.
As one of the early voices in the "reliability debate," urging all of us not to lose sight of the importance of reliability of electric bulk power supply (see, for example, my article in the Oct. 11, 1990, issue of PUBLIC UTILITIES FORTNIGHTLY, on the occasion of the 25th Anniversary of the Northeast Blackout of 1965), I applaud the FORTNIGHTLY for sponsoring a forum on "Reliability, Transmission and Competition" in its June 1, 1997 issue (p. 45). By doing so, your magazine has provided an important public service.
Divide the grid by usage (em local vs. regional. Apportion costs accordingly, to energy customers by fixed charge, and power producers by flow and distance.
Traditionally, utilities have received transmission costs through an average, rolled-in access fee, or postage-stamp approach. In a deregulated environment, that approach will lead to distorted pricing.
And not just because of transmission-line congestion.
Much of the current debate over electric transmission pricing has centered on the various competing methods of congestion pricing, such as zonal vs.
Competition abounds at wholesale, but retail is another story.
Will geography, politics and regional economics stand in the way of real choice for electric consumers at the retail level? Consider this tale of two power players.
One competitor, the Indiana Municipal Power Agency, is proud of itself. In its annual report, IMPA says that open access and competition in the wholesale market allowed it to trim wholesale rates for power it delivered to member distribution companies in 1996. "The results were remarkable," the report reads.
The Federal Energy Regulatory Commission has approved the merger of Brooklyn Union Gas Co. and neighboring Long Island Lighting Co., although concerns emerged about potential vertical market power. A new holding company, temporarily called HoldCo, will run the merged corporation.
At the same July 16 meeting, FERC indirectly sanctioned the merger of Texas-based Valero Energy Corp. with PG&E Corp., the holding company (created Jan. 1, 1997) for California-based Pacific Gas & Electric Co.
LILCO + Brooklyn Union.
Commissioner William L. Massey said four issues would dominate the fall electric agenda of the Federal Energy Regulatory Commission: Orders 888 and 889 implementation, mergers, independent system operators and reliability.
Speaking on Sept. 11 at the PowerMart Power '97 conference and expo in Houston, Massey said the FERC hoped to issue a major order this fall on elements of California restructuring to ease implementation of the ISO and power exchange by Jan. 1, 1998.
Pocketbook issues, like all others, tend to split along political lines.
Meeting on June 12, Sen. Frank Murkowski (R-Alaska) and members of the Senate Energy and Natural Resources Committee focused for the first time on what customers really think about choosing their own energy vendor.
Nevertheless, despite the shift toward pocketbook issues, and away from so-called "inside-the-Beltway" concerns, the testimony came largely from organized consumer groups, and it appeared split down political lines: urban vs. rural, private vs. public, business vs. residential.
The National Association of Regulatory Utility Commissioners has elected Susan F. Clark, commissioner of the Florida Public Service Commission, as its representative on the North American Electric Reliability Council. Clark has served as Florida's commissioner since 1991. Commissioner of the North Carolina Utilities Commission, Allyson K. Duncan, also was elected to serve as a NARUC representative. Duncan will represent NARUC on the advisory council to the board of directors of EPRI.
Tony A. Prophet, former new business development v.p.
New England states, feeling threatened by increased pollution from Midwest coal-fired generation, recently began lobbying for tougher national environmental standards tied to electric deregulation legislation. The perceived threat is based on the belief that coal-fired plants in the Midwest with excess capacity will increase exports to higher-cost New England states. This increased generation and exportation could lead to more pollution in the New England states.
New York state's electric utilities in a joint filing at the Federal Energy Regulatory Commission have called for creation of an independent system operator, a power exchange and a reliability council, termed the "New York State Reliability Council."
The proposal stems from a collaborative process and is intended to complete the transition to full compliance with FERC Order 888. It includes numerous provisions:
• New York ISO. Would control state's bulk power transmission facilities;
• Transmission Pricing.