Fortnightly Magazine - January 15 1997

American National Power announced three executive changes: Joseph E. Cofelice, senior v.p., was given the added post of COO; Jim Murray, senior v.p., was given additional duties of CFO; and David L. Coke, director-asset optimization, was promoted to operations v.p.

Peter W. Delaney, a cost-cutting commissioner in the New York Office of General Services, was appointed senior v.p.-business services at the New York Power Authority. The Authority also promoted Gerard V. Loughran, a principal attorney, to v.p.-human resources.

The Institute of Gas Technology (IGT) elected Roger A.

Wholesale power transactions continue to grow. During 1995, utilities spent more than $58 billion on bulk power and, for the first time, investor-owned utilities spent more for electricity ($30 billion) than for fuel ($29 billion) to generate it. The reasons for the expansion can be traced to more aggressive marketing strategies by electric utilities, an increasingly competitive group of independent power providers, and the presence of power marketers as a formidable and growing group of power traders.

Expansion in wholesale markets is hardly new.

Southern Communications Services, Inc., which recently entered the wireless communications market, has begun to market products and services under the name of its parent, Southern Company. Southern also is parent to Alabama Power, Georgia Power, Gulf Power, Mississippi Power, and Savannah Electric.

Gulf Power, meanwhile, signed a contract with Scientific-Atlanta, Inc. for two-way energy management applications. Some 40,000 homes will be fitted with the interactive systems over eight years.

A study procured by the INGAA Foundation (Interstate Natural Gas Association of America) finds a resurgence in use of liquefied natural gas (LNG) as a peak-shaving alternative for local distribution companies (LDCs).

The study, "The Use of Liquefied Natural Gas For Peaking Service," conducted by Stone & Webster Management Consultants, Inc., attributed a rise in the use of LNG plants for peak shaving to a deregulated environment (FERC Order 636, plus use of the "straight fixed-variable" rate design for gas pipeline capacity), which forces LDCs to assess their true capacity needs.