Sithe Energies Inc. claims that its restructuring proposal, "Energizing New York," would save ratepayers $15 billion over 10 years, while creating a favorable environment during the transition to competition.

PacifiCorp's wholly-owned subsidiaries, PacifiCorp Holdings, Inc. and PacifiCorp Australia Holdings Pty Ltd., have agreed to purchase Powercor, an electric utility in southeast Australia, for about $1.6 billion. Powercor is one of five distribution companies being sold by the State of Victoria in its first stage of privatizing distribution and generation utilities. Moody's Investors Service has placed the ratings of PacifiCorp and PacifiCorp Holdings on review for possible downgrade.

In the second phase of the Pennsylvania Public Utility Commission's (PUC's) investigation into electric industry restructuring, Metropolitan Edison (ME) and Pennsylvania Electric (PE) have proposed a regional wholesale electricity market based on the Pennsylvania-New Jersey-Maryland power pool. All electric generators would sell into the market, which would function as a spot market, while accommodating bilateral contracts.

The pool would coordinate all power sales and purchases to assure the reliability and integrity of the regional electric grid.

The Government of Mexico on November 8 revealed its new natural gas regulations at a special conference of industry executives in Mexico City. The new rules promote use of natural gas; create a competitive, market-driven gas industry; encourage private investment; enhance customer choice; and protect the environment. Private-sector transmission, distribution, and storage of gas were all previously controlled by the state.

Conference attendee Thomas A. Page (em chairman of San Diego Gas & Electric Co.

jü( )l, n: A unit of energy measurement equal to a watt-second.

San Diego Gas & Electric signed a power-sales contract with Salt River Project (SRP) for 100 Mw of firm capacity and energy for 1996. SRP will gross about $12 million from the sale.

A Siemens Power generation research team claims a new world record in high-temperature, solid-oxide fuel cells for use in power generation plants. The team achieved an output of 10.7 Kw, operating on hydrogen and oxygen at 950°C.

and Market Power

Coal, railroads, and electric utilities have been closely intertwined for most of the 20th century. Today, coal fuels over 56 percent of the nation's electricity. Coal and rail transportation together cost electric utilities over $23 billion annually.

Over the past 15 years, a combination of events (em including productivity gains, technological innovations, and consolidation (em has resulted in a very competitive fuel and transportation market.

Susan F. Tierney, former assistant secretary for policy at the U.S. Department of Energy, has joined The Economics Resource Group, Inc. as a managing consultant.

UGI Corp. has hired William D. Katz as v.p.-corporate development. He succeeds R. Paul Grady, now v.p.-sales/

operations of UGI's AmeriGas Propane subsidiary.

Stephen D. Chesebro', Tenneco Energy's CEO, was promoted to chairman. Edward J. Casey, Jr. joins the company as president and COO.

Deregulate in haste; repent at leisure. That's what they say about love, marriage, and ratemaking. Yet, in the utility business the regrets are pouring in (em sometimes from the same people who sent out the invitations.

For example, at the end of November, a week before I put fingers to keyboard, the FERC was shocked to discover that the proposed Altus merger between The Washington Water Power Co. and Sierra Pacific Power Co.

When economic reformers in the old Soviet Union searched for a metaphor to describe their move to a market economy, they a spoke of a horseman jumping a ditch. The true test of a strategy was that it carried you to the other side. It was no time for half-measures.

Electric utility regulators face a similar challenge.

allow choice between price, reliability, and scheduling.

Customers with a choice are demanding, and getting, lower electric bills. These customers generally include municipals and large industrials. Municipals, as wholesalers, gained access to alternative suppliers via the Energy Policy Act of 1992.