Fortnightly Magazine - January 1 1996

Marketing & Competing

As we move toward open energy markets, new players will be competing to offer consumers many of the services utilities offer today. It will no longer be enough to just meet our obligation to serve. We will also need to provide the products and services that customers value, at a level superior to that of the competition, while enhancing value to shareholders.

To retain customers, utilities need to understand the nature of the market. What customer values shape it?

Off Peak

At the November 1, 1995, meeting of the Natural Gas Roundtable in Washington, DC, a representative of the American Gas Association (A.G.A.) launched a blistering attack against the Energy Information Agency (EIA) for its forecasts of natural gas prices. In essence, A.G.A. complains that EIA's long-term forecasts have proven unreasonably high, softening enthusiam for gas-burning equipment (from turbines to gas water heaters).

As quoted by Gas Daily, A.G.A.'s representative said: "The bottom line is whose numbers are right.

Jurisdictional Gridlock: A Pathway Out of Darkness

Bunker Hill. Gettysburg. Pearl Harbor. Iwo Jima. The Cold War. Each of these famous conflicts resonates in our history books. Despite the end of the Cold War, we may face another battle, this time between the Federal Energy Regulatory Commission (FERC) and the states over jurisdiction.

Rep. Dingell Questions Need for Federal Bill

Speaking last fall in New York City, Rep. John D. Dingell (D-MI), the ranking Democratic leader of the House Commerce Committee, questioned the need for federal legislation on electric utility restructuring, and even warned the audience that passage of any federal legislation in the 105th Congress to require electric competition was far from guaranteed.

The occasion for the talk was a conference entitled, "Deregulation (em The Changing Electric Utility Industry (em Opportunities and Risks," sponsored by the financial house of Bear, Stearns & Co.

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