Letters to the Editor

To the Editor:

People

New Opportunities:

Stephan T. Haynes, who has been American Electric Power's vice president of risk oversight since January 2002, was named vice president of corporate finance for the company.

Kay G. Priestly was named Entergy Corp.'s vice president of financial issues management. Priestly earlier was managing partner at Arthur Andersen.

Frontlines

Critics say FERC's filed rate doctrine is wrong for the times.

It's quite remarkable how the Federal Energy Regulatory Commission (FERC) has been able to pound a square peg into a round hole. With not much more than a wink and a smile, FERC has taken a depression-era law meant for monopolies-the Federal Power Act (FPA)-and has made it serve double duty as a foundation for competitive power markets.

Untapped T&D measurement data could make the difference on reliability.

Utility executives rely on sound decision making to determine how resources should be allocated, to ensure that systems operate with a maximum efficiency and reliability at the lowest cost. These executives walk the fine line of deciding where money should be spent to minimize the likelihood of an expensive catastrophe while also achieving a targeted level of reliability. These issues include:

Except for local reinforcements and new generation interconnections, few transmission construction proposals are moving forward.

There's plenty of talk about transmission, says Theo Mullen. "But real action on transmission construction is scant," he adds. "Conferences and reports abound. Projects of all sizes are being proposed. But, except for local reinforcements and new generation interconnections, few transmission construction proposals are moving forward. The vast majority of larger projects are stalled for lack of financial commitment."¹

How joining the EU may transform the Central and Eastern European electricity sectors

It is not coincidental that energy assets are for sale across Central and Eastern Europe the same year that 10 new countries join the European Union (EU). New member states had to demonstrate significant sector reforms to qualify for EU membership. These sectors have historically had miserable economic results due to artificially maintained low prices, poor and often corrupt management, and significant political interference.

Class-action claims for widespread utility service interruptions are a growing trend.

During the dog days of summer, a severe heat wave settles over the service territory of an electric utility. Electricity demand reaches an all-time peak as customers turn their air conditioners to the highest setting. Service interruptions occur throughout the utility's territory as high loads and low voltages cause breakers to trip, fuses to operate, transformers to overheat, and equipment to fail.

The treacherous journey toward a more efficient and transparent Northwest power market may be nearing its conclusion.

Steve Wright stands at the helm of an agency with a seemingly impossible task. As CEO and administrator of the Bonneville Power Administration (BPA), Wright must serve a broad spectrum of interests, from aluminum smelters to sockeye salmon. And no matter what he or anyone does, it's impossible to make them all happy at the same time.

Business & Money

Investors are asking utilities questions about environmental and social risks. Answers can be a challenge.

When the tech-stock bubble burst in 2001, investors were outraged to learn that many stock analysts were being paid to over-hype stocks. The following year, Enron's ugly public death revealed the presence of a virulent infection in governance of many large and respected companies.

Commission Watch

CPUC questioned historic oversight authority.

To guarantee the continued growth of liquefied natural gas (LNG) importation and use in the United States, the energy industry needs to pay close attention to govern the regulation, siting, and operation of LNG import terminals-issues traditionally overseen by the federal government.