Wisconsin Forges Grid Model

Transco law opens the door to munis and co-ops.

As the electric industry awaits a final rule from the Federal Energy Regulatory Commission on regional transmission organizations, Wisconsin has moved to create its own stand-alone transmission company, or transco.

In the process, Wisconsin will allow grid-dependent utilities to get a piece of the action.

The Legislation. On Oct. 27, Wisconsin Gov. Tommy Thompson signed Assembly Bill 133, an omnibus budget bill that incorporated original Assembly Bill 389.

Mail

Green power beats a renewables mandate, says SoCalEd exec, while a consultant questions assumptions about distributed generation.

I have to agree with the lead sentence in Bruce W. Radford's Oct. 1 Frontlines editorial ("We Got Green?" p. 4). You really "don't quite get it about green power."

Frankly, after reading [reams] of Fortnightly editorials touting the benefits of the new free markets in electricity, I was astounded to see you disparaging the business of satisfying clearly revealed consumer preferences.

1999 ROE Rate Case Survey

(December 1999) A survey of utility rate decisions affecting authorized rates of return on common equity (ROE), as issued by state public utility commissions (PUCs) during the period Sept. 30, 1998 to Sept. 30, 1999, indicates a small but discernible trend toward lower returns. There is no clear evidence, however, that PUCs are rethinking their assessment of utility investment risk to reflect divestitures of generation assets or a retrenchment of utility functions toward the model of a stand-alone wires or distribution company.

Off Peak

What we're not arguing about is important too.

More than 200 organizations and individuals have staked out positions in comments filed with the Federal Energy Regulatory Commission, in response to its proposed rulemaking on regional transmission organizations (RTOs).

The major debate in the reply briefs is on three issues.

Mandatory vs. Voluntary Participation? The FERC's proposed rulemaking relies on strong RTOs rising spontaneously from the primeval murk of the conflicting interests of the states and industry participants.

Electric Restructuring: Before, During and After

Five commission chairs from states in all phases of deregulation ponder their changing roles. Will market success make them obsolete?

As most state electric competition plans are implemented within the next few years, regulators face an uncertain future. And they're already reflecting on their role in a changing industry.

Regulatory commissions in both Illinois and California have created panels to discuss the issue and the National Association of Regulatory Utility Commissioners (NARUC) has held closed-door sessions on the subject.

Electric Transmission: Do State Regulators Still Have a Voice?

How the FERC's RTO case has split the PUCs into five warring factions.

With momentum building for competition in retail energy markets, and with the real authority seeming to shift to the federal government, do regulators at the state public utility commissions (PUCs) still have a voice in setting policy for the electric transmission grid? After all, the Federal Energy Regulatory Commission enjoys exclusive jurisdiction over interstate transmission service. That's the one major utility sector likely to remain heavily regulated for some time.

The Baby and the Bathwater: Utility Competition, But at What Price?

What the Supreme Court thinks about handicapping the incumbent to level the field for new players.

Regulators today sit on the horns of a dilemma: How far to level the field in the name of competition?

If regulators fear market power in the incumbent utility, and so impose restrictions on its activities and assets, they may impair its effectiveness and thus distort the very competition they attempt to foster.

Frontlines

But does anyone know the real price of power?

You've read the headlines from Maine - how regulators asked for bids for competitive electricity but got prices higher than the old regulated rate.

But it gets worse. The more open the market, the higher the bid.

Central Maine Power and Bangor Hydro-Electric operate within ISO New England, which now is open for competition.

People

The Federal Energy Regulatory Commission appointed Bud Earley policy advisor on electric matters. Earley most recently served as director of the electric policy division of the FERC's Office of Economic Policy. The FERC named Bobbie J. McCartney an administrative law judge. She previously served as deputy chief administrative law judge in the Social Security Administration's Office of Hearings and Appeals.

The Bonneville Power Administration named Jeff Stier its new vice president of national relations. Stier joins BPA after 12 years on the staff of Rep.

Benchmarks

Steep environmental costs mean coal-fired power's competitive edge will drop by half.

A mid increasing pressures to reduce costs, the competitive positions and profitability of U.S. coal-fired power plants will change dramatically in the near-term. Resource Data International Inc.