Those in the United Kingdom don’t talk about privatization and electric restructuring in terms of getting it right the first time ... Instead, they use terms like evolution, waves of development, and system adjustments. Industry restructuring is an evolutionary process, not a switch-it-on, one-time event, as generally is assumed in the U.S.

Performance-based ratemaking in the United Kingdom is now entering its third "generation," or regulatory period. Due to the sharpened incentives of PBR relative to cost-of-service regulation, the UK has seen a substantial improvement in electricity distribution productivity, annual gains of 3.5 percent. The price cap form of PBR, incorporating an X factor, is being adopted in an increasing number of regions, from the Netherlands to Canada.

A letter to Michael J. Manning at Fulbright & Jaworski, L.L.P. from FERC General Counsel Kevin P. Madden.

The analysis shows how one could expect allowed return on equity to change as interest rates change and the resulting financial effect on endusers. The positive side of this thought process is that a continuing low interest rate environment should attenuate the effect of high commodity prices for retail users of electricity.

In addition to increasing total U.S. gas consumption to 34.7 Tcf in 2020, it would take another 11.3 Tcf/year to convert existing coal-fired U.S. steam-electric capacity to gas-fired combined-cycle units operating at the same load factor. Clearly, that is a tall order. Nevertheless, we must face the fact that there are few alternatives other than backing out coal-fired generation that would reduce global carbon emissions to a total of less than 870-990 million metric tons between 1991 and 2100. The logical endpoint will be electrification of most stationary energy uses with high-tech renewable or essentially inexhaustible energy sources, and the use of hydrogen from non-fossil-fuel sources as the dominant transportation fuel.

The world of fiber optic easements is a world in which probably only a small percentage of real property transactions conform to the purist legal definition of fair market value established by our courts. In such a world, we should view the ATB or going prices paid by fiber optic conduit wholesalers or retailers as reflective of “fair market value,” no matter how one-sided they may appear to be. Across-The-Board easement prices come closest to reflecting the minimum conditions necessary to replicate true competitive market for partial property rights in limited-market corridor properties.

Two readers — President and CEO of El Paso Electric James Haines and Richard D. Cudahy, Judge for the U.S. Court of Appeals for the Seventh Circuit, Chicago — respond to a letter written about Cudahy's article “The Stranded Ratepayer” (March 15, 2001, p. 26).

Restructuring has already created a badly needed new atmosphere for the industry. There is an infusion of new thinking and vigor that portends bringing the industry's performance up to the standards of the rest of the economy. We have no reason to believe that regulation would fare better in the future than in the past. Let's go forward with electric restructuring. Unfortunately, however, it's turning out to be more difficult than we expected.

John M. Melby at Automated Power Exchange, Robert T. Bucknell at Bay State Gas, Michael R. Mott at Dynegy, and more.

FERC's California plan needs pressing, to fix blatant gaffes on NOx, demand bids, and megawatt laundering.