Perspective

How the FERC risks a free-for-all in cases for gas facility authorization.

By final rule, the Federal Energy Regulatory Commission (FERC) has adopted a new optional process for applicants seeking a pipeline certificate or gas import/export authority under the Natural Gas Act to construct, operate or abandon a jurisdictional facility.[Fn.1] It's known as the Pre-Filing Collaborative Process, or PFCP, but it means trouble.

In seeking to speed up administrative review, the FERC has only invited delay.

News Analysis

Do state regulators stand to learn more from their electric choice information programs than the customers they aim to reach?

What does it cost to educate an energy consumer about electric choice? Between $1.60 and $2.26, to judge by the public education campaigns in California, Pennsylvania and New Jersey.

In the first year of their information programs, these states spent a combined $103 million, funded through consumer rates. Though an impressive total budget for three public initiatives, that amount pales in comparison to the ad dollars spent by General Motors.

Off Peak

The supplier that bundles energy and telecom services into a single, low bill will win out, say residential customers. Will it be the electric company?

The increasingly busy lifestyle Americans lead could play into the hands of energy suppliers able to ease that burden, according to the findings of a national survey.

Consulting firm PHB Hagler Bailly found that 45 percent of residential customers would consider their energy company as a supplier of telephone service.

Northeast Energy Markets: Windfall or Washout?

Weighing the outlook for new plant investment in gas-fired power and related infrastructure.

The jury is still out on the type and size of additional energy infrastructure desirable in the Northeast United States, but enough data is in to make a few guarded observations.

The situation is fluid.

Merchant Mania: Regional Markets Draw Gen Plant Projects

Developers launch 70,000 MW of new capacity in Texas, PJM and New York state, but how much will get built?

It's so hot down here, it isn't funny," laughed Ken Donohoo, senior transmission systems engineer at the Electric Reliability Council of Texas independent system operator. But no, he wasn't talking about last summer's scorching temperatures.

Instead, Donohoo was referring to some 30,000-plus megawatts of generation capacity proposed to be built in ERCOT between 2001 and 2003.

Ancillary Services: A Call for Fair Prices

A case study shows how today's typical tariffs can force some industrial electric customers to subsidize others.

There ought to be a better way for electric utilities to set prices for ancillary services - so that customers pay rates that fairly reflect the needs they impose on the bulk power system. However, while federal officials seem to agree with this point, so far they have done little to turn the idea to action.

Frontlines

A century gone by and we're still no closer to real choice in electricity.

The magazine being what it is, this column usually goes to press at least three weeks ahead of the cover date. Ordinarily I try to anticipate some upcoming event before the fact.

With this issue, however, the job gets tougher. It's more than a new year. In the popular view it's a new century. (But mathematicians know the Millennium begins in 2001.)

Did the electric grid crash on Jan. 1? Did the Federal Energy Regulatory Commission announce its new rule on regional transmission organizations on Dec.

People

The Electric Power Supply Association elected B. Kent Burton, senior vice president of policy and international government relations for Ogden Energy Group, its chair for 2000. Kenneth E. Randolph, senior vice president and general counsel for Dynegy Inc., was named EPSA's first vice chair, and Bill Mack, president and chief executive officer of Coastal Power Co., was named second vice chair.

EPSA also named Donn Salvosa manager of government affairs and Shannon Gordon manager of finance and administration.

News Digest

State PUCs

Gas Retail Rate Design. In a move toward equalizing rates of return between customer classes, the Oregon PUC authorized Northwest Natural Gas Co. to increase base rates by nearly $246,000, at the same time boosting residential rates by 1.3 percent but lowering rates for large commercial and industrial users. It set return on equity at 10.25 percent, finding the rate "consistent with the downward trend of ROEs authorized by other regulatory commissions." Order No. 99-697, Nov. 12, 1999 (Ore.P.U.C.).

Electric Restructuring.

News Analysis

Utilities and marketers hash out the final details on a standardized contract for physical trades of electricity.

A standardized master contract for U.S. power trading could help wring order out of chaos in electric commodities markets by defining a common set of terms for physical transactions for both utilities and marketers, say experts.

But success likely will hinge on how well utilities and marketers can compromise on a narrow list of issues still to be settled, say those same experts.