People

Commissioner Lauren "Bubba" McDonald of the Georgia Public Service Commission was appointed to a three-year term on the National Association of Regulatory Utility Commissioners' (NARUC) Committee on Electricity.

Peabody Group named Jiri Nemec, previously group executive of Northern Appalachian operations, group executive of Midwest operations. Nemec replaced Mathew A. Haaga, who resigned. James A. Beck Jr., previously group executive of Southern Appalachian operations, was appointed to oversee all of Peabody's Appalachian operations in West Virginia.

David W.

Benchmarks

Gas competition is heating up in Chicago, and Gulf suppliers may be the losers.

Chicago promises to be an exciting market in the natural gas industry during the next few years, as it becomes home to more than a billion cubic feet per day (Bcfd) of Canadian supplies. The birthplace of the electric blues is poised to become center stage for a super-charged competition among gas producers from Canada, the Rocky Mountains and the Mississippi delta.

By late 2000, the Alliance Pipeline in the Midwest will enjoy 1.2 Bcfd of additional natural gas capacity.

News Digest

Mergers & Acquisitions

CP&L + Florida Progress. Carolina Power & Light announced Aug. 23 that it would purchase Florida Progress Corp. for $5.3 billion in a combination that would create the nation's ninth-largest utility in terms of generating capacity, with $6.7 billion in annual revenues and 2.5 million customers in three states. CP&L would pay a premium (between 16.5 percent and 21 percent) over the pre-announcement share price of FP stock.

Off Peak

Global water shortages loom, but most U.S. utilities don't have long-range supply plans.

By 2050, according to estimates from Population Action International, one-fourth of the world's population likely will live in countries blighted by chronic or recurring shortages of fresh water. But are global water shortages perceived as an imminent threat in the United States? Not at most U.S. water utilities, it appears.

The Role of Power Exchanges in Restructured Electric Markets

As the FERC ponders RTO structure, California's incumbent PX defends its unique design.

The great California debate - what role and structure for a power exchange? - once again is rearing its head, this time on the national scene. The resurgence of interest in regional transmission organizations, or RTOs, spurred by the recent Notice of Proposed Rulemaking[fn.1] issued in May by the Federal Energy Regulatory Commission, raises questions about the relationship between RTOs (designed primarily to manage grid operations) and power exchanges (seen as vehicles to facilitate trading).

Power Exchange Politics: Weighing the Regulator's Role

Federal and state interests clash as the FERC battles California over the future of the state's power exchange.

The California Power Exchange will not outlive its four-year mandate because it cannot compete with lower-cost exchanges, such as the New York Mercantile Exchange, Automated Power Exchange and low-cost over-the-counter brokers. So says Edward Cazalet, chief executive officer at Automated Power Exchange and chief rival of the CalPX.

Automated Meter Reading: If, Then When?

AMRA's annual symposium addresses potential payoffs and lingering concerns about the technology.

The annual Automated Meter Reading Symposium, Sept. 26-29 in Reno, Nev., finds AMR a year further along in its evolution in terms of both implementation and ideas for application and usage.

But while a few electric utilities have embraced AMR and others will arrive at the symposium ready to make purchases, some uncertainty remains for others as to the what, when and how of the technology.

How Soon is Now?

The Internet Solution: AMR Reborn

Roll over wireless, tell your meter the news.

AMR has come full circle - from industry darling to problem child and now back again to the next new thing. For this latest reincarnation, thank the Internet.

Early AMR efforts focused on how to recoup costs through lower operating expenses and more accurate usage data, but infrastructure startup costs proved a stumbling block to modernization when industry uncertainty over deregulation made companies wary of whether they'd ever see a return on their investment.

Now deregulation has matured enough to remove some uncertainties.

The EDI Solution: Help of Hindrance in Billing and Metering?

Consultant blasts national effort, says standards themselves are the problem.

Concerted efforts by utilities, retail marketers and metering companies to establish uniform business practices by implementing national electronic data interchange standards, or EDI, as part of retail competition, are being undermined by the EDI standard itself, says Doug Houseman, director at Cap Gemini Hagler Bailly.

"It is a very big, nasty, complicated monster. There are a lot of people that do not know what they are doing," he says.

No Pain, No Gain: Interoperable Systems Elude Gas Industry

With so much at stake, why don't utilities ask vendors for plug and play?

Everyone agrees that competitive retail energy markets need interoperable information systems. Otherwise, the high cost of switching proprietary metering and data communications systems could offset savings from customer choice. Standardization reduces the costs of automating operations - also crucial for competitive companies. Interoperable "plug and play" systems can free companies of dependence on expensive, single-sourced equipment. So why do most utility systems remain incompatible from vendor to vendor?