People

Larry Hobart, executive director of the American Public Power Association, plans to retire on July 1, ending a 35-year career with public power. Hobart became executive director in 1986, and previously served in several management positions. Hobart also serves as v.p. and board member of the Consumer Federation of America.

Pacific Enterprises, parent of Southern California Gas Co., has restructured the company, to include a new Office of the Chairman. The new office will be headed jointly by Willis B.

Frontlines

Merger planning is touchy business. In a hotel crowded with utility executives gathered together to talk mergers, you notice everything: Who's there and who isn't. Who's talking to whom. Who came with his lawyers. And who's always out in the hall on the phone.

That's why I had so much fun last month at the Eighth Annual Utility M&A Symposium, sponsored by EXNET (Public Utilities Reports and The Management Exchange).

Metering Relationships in the Era of Deregulation

Deregulation is a battle over metering relationships with commercial customers, not a struggle between competing suppliers of energy.

As long as the local electric utility emerges from the process with exclusive control over its metering, credit, and billing relationships, then deregulation will only cement its position as the customer's primary energy service provider (em and further enhance the "pool" concept by which the local utility acts as agent for the retail customer to purchase energy from independent power pr

Look Twice Before Diversifying into Telephony

Most electric utilities have invested heavily in building private telecommunications networks. In fact, U.S. utility telecommunication networks combine to form the largest private network, second only to that of the Department of Defense. While these networks improve power system control and operational efficiency, they typically contain excess capacity available for sale to other companies. Given increased competition in their core business, many utilities are currently reviewing opportunities to use this excess network capacity.

A New Index Prices the Market

California, Oregon, and Nevada have developed a regional response to pricing transparency.

The electric utility industry has turned the corner away from monopoly regulation and into the competitive marketplace. No big surprise. Since the late 1970s, consumers have faced increasing sticker shock. In addition, customers want the same choices over electricity purchases that they have with other products.

What Computer Information Systems Mean to Regulators

For the last eight years of my 27-year career in the military, I was responsible for merging the Air Force's computer business with its communications business. This undertaking was similar in at least one significant way to current efforts to expand the role of computers in the regulated utility environment (em education is paramount.

Utilities typically employ computer technology either by creating internal information management divisions/subsidiaries or by outsourcing the work to a company that specializes in computer information technology.

Making a Case for Information Technologies

Financial models within the utility industry are changing rapidly. Driven by competition, deregulation, and shareholder concern ov er profitability, North America's intermediate and larger-sized electric and gas companies are looking more closely at information technology (IT) investments.

What Utilities Should Expect from Competitive Intelligence

Electric utilities are informationally dysfunctional. When we surveyed electric utility managers from around the country, we found a general consensus: Individual employees may possess vital information, but typically they do not know what to do with it. They don't understand why it's important or who may need it.

Idaho Seeks Improvements in LEC Regulatory Plan

The Idaho Public Utilities Commission (PUC) has decided to continue its five-year-old revenue sharing plan for U S WEST Communications, a local exchange telephone carrier, for one year. It initiated a workshop to develop a new regulatory plan for the carrier, and also proposed specific quality-of-service standards and penalties due to a recent decline in service quality.

Wisconsin Approves Performance Incentive Mechanisms

While lowering current rates for electric gas and water services provided by Wisconsin Power & Light Co., the Wisconsin Public Service Commission (PSC) has also approved a series of gas and electric incentive mechanisms for the utility.

The ratemaking modifications include a natural gas procurement incentive that works through the company's adjustment clause and includes a link to spot commodity prices for gas supply as well as a sharing mechanism to allocate the risk of cost changes between ratepayers and shareholders.