People

Vera B. Claussen has been elected the first female president in the American Public Power Association's 56-year history. Claussen is commissioner of Public Utility District Number Two of Grant County in Euphrata, WA. Other new APPA officers include president-elect Thaine J. Michie, g.m., Platte River Power Authority, Fort Collins, CO; and vice president Walter R. McGrath, g.m., Braintree, MA, Electric Light Department.

The United States Energy Association has three new officers: P.J.

Frontlines

On January 1, 1998, California will "deregulate" the state's electric utilities. The Western Power Exchange (WEPEX) and the independent system operator (ISO) will start up, creating an open market for wholesale power.

Elizabeth A.

The Value of Storage: Today Gas, Tomorrow Electricity?

Open-access economics make stored energy something you can bank on. For natural gas and electric power.You can't store electricity, right?

The old shibboleth to some extent is literally true. The electric industry appears different from the natural gas industry in that demand must be matched immediately with production. No viable location comes to mind to put away some of that extra power until it is needed. But literal truth is not necessarily the whole story.

Generation: Big or Small?

Generation: Big orDistributed power may turn

heads, but economics points

to central plants.

By Joseph F. Schuler, Jr.

By 2010, distributed power technologies will make up as much as 30 percent of new electric generation.

The Search for Consumer Content in Energy Marketing and Retailing

The battle to control profit margin really boils down to a battle for the customer premises, where the serious money resides.The gas and electric industries in the United States control about $900 billion in assets (production, logistical, merchant). They employ these assets to serve about 150 million customers (counted separately for gas and electric), but they manage to offer only two rudimentary products (em molecules and electrons (em and at only two levels of service: firm (supposedly) and interruptible (obviously).

Off Peak

Capacity and energy go together like corned beef and cabbage (em

even a two-handed economist can see that.The June 11 Power Broker decision from the D.C. Circuit, involving Florida Power and Light Co. (FP&L) and certain wholesale customers (see sidebar), reminds one that a dish of corned beef and cabbage tastes better when you don't leave out the cabbage.

On the surface, the case indicts the idea of average-cost pricing: "All hands recognize that the

problem originates in the use of average costs . . .

West Virginia Revamps Gas Rules

The West Virginia Public Service Commission (PSC) has approved a series of changes to its rules and regulations for gas utilities and gas pipeline safety. The changes include a new rule on customer deposits that calls for annual adjustment of the interest rate utilities pay on such deposits. The PSC explained that the change is designed to make the rate more market sensitive by tying it to U.S. Treasury Bill rates for the last quarter of the preceding year.

Rate Plan Emphasizes Incentives, Low-income Assistance

While approving a proposal by Marbel Energy Corp., owner of an independent gas and oil production business, to acquire Northeast Ohio Natural Gas Corp., a natural gas local distribution company (LDC), and Ohio Intrastate Gas transmission Co., an intrastate gas pipeline, the Ohio Public Utilities Commission (PUC) has directed both the LDC and the pipeline to offer nondiscriminatory open access to all of their service offerings. The PUC explained that the open-access condition would further competition in the state's natural gas industry.

N.M. Rejects Tariffs for LDC Nonutility Services

The New Mexico Public Utility Commission (PUC) has rejected a request by PNM Gas Services, a division of Public Service Co. of New Mexico and a natural gas local distribution company (LDC), to implement two new experimental "optional utility services": 1) a Food Service Maintenance Program (maintenance and repair on commercial equipment), and 2) an Energyguard Bill Payment Protection Plan (insurance).