Fortnightly Magazine - February 1 1996

It appears that The Washington Water Power Co. (WWP) and Sierra Pacific Power Co. (SPP), which were hoping for a quick OK on their proposed merger to form "Altus," may have been in the wrong place at the wrong time. Instead of a perfunctory approval, the WWP/SPP merger now may become the test case for evolving merger policy at the Federal Energy Regulatory Commission (FERC).

Perhaps the utilities should have seen it coming. In approving the Midwest Power Systems, Inc./Iowa-Illinois Gas & Electric Co. merger, FERC Commissioners William L.

There are essentially two kinds of reliability: sufficient generating capacity, and sufficient transmission capacity. Although it often receives the most attention, generation accounts for only about 10 percent of reliability concerns. Even when there is a problem, there is usually time to prepare; demand can be reduced through voltage reductions, interruptible customers, public appeals, and as a last resort, rotating blackouts.

American Electric Power Co. (AEP) plans to consolidate its Columbus, OH, nuclear generation management and support staff with the nuclear staff at its Donald C. Cook plant in Bridgman, MI. The relocation, scheduled for summer 1996, affects about 250 employees. About 50 positions

will be cut. Total employees in the AEP nuclear

organization will be reduced from about 1,300 to about 1,180, a 9.2-percent cut.

A division of UtiliCorp United has entered into an agreement to provide heating and cooling services to 170 public school districts in southern California. The UtiliCorp marketing branch, Broad Street/Energy One, will supply natural gas at prices below that of the local utility. The participating school districts spend about $12 million a year for natural gas to heat and cool their school buildings. "This is a unique contract because it shows quite dramatically how everyone can benefit from deregulation," said Brooks Burton, Energy One vice president.