On June 6 the Energy Production and Regulation Subcommittee of the Senate Energy and Natural Resources Committee, chaired by Sen. Don Nickles (R-OK), held a hearing on legislation S. 708, The Electric Utility Ratepayer Act, which would repeal section 210 of the Public Utility Regulatory Policies Act (PURPA), which mandates purchases from qualifying facilities (QFs) at avoided-cost rates.
Central and South West Corp. (CSW) has notified El Paso Electric Co. (EPE) that it has breached the companies' merger agreement by participating in discussions about and spending large sums on a possible stand-alone reorganization plan. CSW said it was not terminating the merger, but merely protecting its rights. On May 22, CSW received a request from EPE to extend the merger agreement for six months, until December 8, 1995.
Three representatives from Wisconsin's electric industry have asked Wisconsin commissioner Scott A. Neitzel to give highest priority to investigating the proposed $6-billion merger of Wisconsin Energy Corp. and Northern States Power Co. to create the nation's 10th-largest electric utility, Primergy Corp. In a letter, executives from Madison Gas & Electric Co., Wisconsin Public Power Inc.
Niagara Mohawk Power Co. (NiMo) has appealed a New York Public Service Commission (PSC) order upholding its purchased-power contract with Sithe Energies. In a series of decisions, the PSC had allowed Sithe to sell electricity from the 1,040-megawatt Independence plant to two NiMo customers: Alcan Rolled Products and Liberty Paperboard. In April 1994, the PSC ruled that if Sithe were to sell electricity at retail it would be lightly regulated.
Moody's Investors Service has released a report, Moody's Outlines Risk Profile for Electric Cooperatives, which finds that the era of deregulation will lead to an average credit quality decline for generation and transmission cooperatives (G&Ts), just as it will for investor-owned utilities (IOUs) over the next five to 10 years. The report stresses that both G&Ts and distribution cooperatives face increased business and financial risks.
A new group, the Independent Power Suppliers of ERCOT (IPSE), has formed to speak for nonutility power suppliers that operate within the Electric Reliability Council of Texas (ERCOT). The stated mission of IPSE is "to promote the reliable operation of power systems within ERCOT, in which a competitive, environmentally responsible and profitable independent electric power industry can flourish." Membership is open to all nonutility generators (NUGs), cogenerators, and power marketers.
The North American Electric Reliability Council (NERC) has completed a series of workshops on what it calls "electronic information systems" (EINs). The NERC workshops were held in response to the Federal Energy Regulatory Commission (FERC) "Mega-NOPR" of March 29, which contemplates opening the wholesale electric industry to competition.
T.R. Standish's letter ("NUGs Take the Cake," May 1, 1995) in response to our article ("How State Regulators Should Handle Retail Wheeling," Feb. 15, 1995) reflects the views of those who believe that the full benefits of competition in the electric power industry do not require retail competition. Mr. Standish, in fact, believes that retail competition is bad and not inevitable. We would like to address several of his points:
Reasonable people can certainly debate the inevitability of retail competition. But unlike Mr.
Philip R. Sharp, former 10-term congressman from Indiana, has been named director of the Institute of Politics at Harvard University's John F. Kennedy School of Government. Sharp assumes the position on July 1, succeeding Charles Royer, former mayor of Seattle, WA.
NICOR Inc. has elected Thomas L. Fisher, currently president and COO, to the additional position of CEO. Fisher will continue as president and CEO of Northern Illinois Gas Co., the company's largest subsidiary.
Charles W.
"It could have been worse."
"It says to the market, `It won't be so bad.' It will take longer now, so that's better for the utilities."
"It creates a new bureaucratic entity that will make regulatory choices."
"It's regulated deregulation. It's alarming if that's the prototype for the nation."
That's the word, respectively, from Barry Abramson at Prudential Securities, Edward J. Tirello, Jr. of NatWest Securities, Steven Fetter at Fitch Investors Service, and Dan Scotto of Bear Stearns.