The Nuclear Regulatory Commission has issued a final policy statement on its intended approach to nuclear plant licensees as the electric industry moves toward greater competition.
While the NRC has concluded that its regulations can address future changes, it is considering revising its financial and assurance requirements for decommissioning funds.
A new report from the Department of Energy may confirm what many in the electric industry have said all along: That while stranded costs could dissolve some short-term gains from competition, in the long term, consumers will still come out ahead.
"I'm surprised and delighted that the same EIA, which once wrongly predicted price hikes from natural gas deregulation, now confirms what we've been saying all along," said Rep. Tom Bliley (R-Va.).
Restructuring of the electric industry "is not an impediment" for the natural gas industry, according to Paul Holtberg of the Gas Research Institute. Just make sure to distinguish between restructuring's evolution, or transition period, and the post-transition period, he adds.
The just-released 1998 edition of GRI's "Baseline Projection of U.S.
Potomac Electric Power Co. says merger delays are costing it money and it's asking the Maryland Public Service Commission to approve a rate increase.
PEPCO says savings achieved from its proposed merger with Baltimore Gas and Electric Co. would have absorbed the increased costs. The merger would form Constellation Energy.
The rate increase would be only for the utility's Maryland customers.
New Yorkers could get tax breaks of up to $3,750 for installing solar systems, beginning next year.
New York Gov. George F. Pataki signed into law on Aug. 19 the "Solar Choice Act," aimed at encouraging solar energy system investments through income tax credits. The Act also would allow residential customers to receive the full retail value of the electric generated by their systems.
Investor-owned utilities serving the Southeast U.S. are well-positioned to face increasing competition, but the region's municipal joint power agencies and electric co-ops may face serious losses.
That's the finding of a Moody's Investors Service regional study, the fourth in a series.
The "Southeast Electric Break-Even Analysis" estimates $24 billion in stranded costs for the region, with cooperatives and JPAs holding a disproportionately high portion of the per-kilowatt costs.
The New Mexico Public Utility Commission has approved a natural gas restructuring plan for Public Service Co. of New Mexico.
The plan allows residential gas customers and small businesses using less than 10,000 therms per year to select gas providers; some as early as December (Case No. 2760).
According to David Warren, PUC executive director, the commission opened natural gas to competition 10 years ago, but because of various barriers, customers didn't take advantage of it. PSNM, for example, continued to charge exiting customers a $35-per-month rental fee.
Southern California Edison has begun auctioning its 12 gas- and oil-fired generation plants. The plants boast an operating capacity of about 10,000 MW and a combined value of about $700 million.
The auction is being conducted in two phases. The first phase began Aug. 5, when SoCalEd sent out a confidential offering memo for its five "non-must-run" plants. The second phase took place in late August, when SoCalEd auctioned "must-run" plants.
The California Public Utilities Commission has approved "Gas Accord," a settlement that enhances competition by restructuring the way natural gas is bought, sold and transported (Decision 97-08-055, Docket A.92-12-043).
"This is a landmark step to further deregulate the natural gas industry here in California," said Jack Jenkins-Stark, PG&E senior v.p. "These changes parallel those in the electric industry."
The collaborative settlement unbundles rates for transporting natural gas on PG&E's system.
The California Public Utilities Commission issued its final order on unbundling rates for generation, transmission and distribution functions performed by the state's three largest investor-owned utilities on Aug. 1.
The commission also determined how to calculate transition costs and addressed customer billing and education issues. (Decision 97-08-056, Docket A. 96-12-009 et al.)
The utilities affected are Pacific Gas and Electric, San Diego Gas & Electric, and Southern California Edison.
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