Nevada Gov. Bob Miller (D) on July 17 signed into law an electric restructuring bill to bring competition to the state starting July 9, 1999.
AB 366 will split the state's utility commission into a three-member Nevada Public Utilities Commission and a three-member Transportation Service Authority. The commission would employ a rulemaking proceeding to unbundle rates, design consumer safeguards and set parameters for stranded costs.
The New Jersey Legislature has passed a utility tax reform package eliminating the gross receipts and franchise tax for electric, natural gas and telephone utilities.
The new tax system will levy a 6-percent tax on electric and gas sales, a 9-percent tax on companies selling the electric and gas and a transitional tax to be phased-out after five years. The package guarantees that municipalities will receive $745 million in aid in 1998 to make up for the lost revenues. That annual amount will climb to $755 million in 2002.
The U.S. House Commerce Committee has passed HR 629 approving an agreement by Vermont, Texas and Maine to dispose of low-level nuclear waste at a site in Texas.
The bill, if approved by the full House, would create the nation's tenth low-level waste disposal compact. The proposal already has the support of the various governors and state legislators. Vermont and Maine each would pay $25 million to ship out the low-level waste, which would include materials from nuclear utilities.
The proposed site lies in West Texas, about 90 miles east of El Paso. U.S.
Anatomy of a nuclear waste site death Centerior Energy is mystified. Until June 26, Ohio gladly was on its way to hosting a low-level radioactive waste disposal site. Then suddenly at a three-hour meeting, 13 years of planning crashed and burned.
On that day, the Midwest Interstate Low-Level Radioactive Waste Commission voted to derail development of a low-level waste disposal facility in Ohio. The commission represents the Midwest Compact, which comprises Ohio, Indiana, Iowa, Minnesota, Missouri and Wisconsin.
Bay State Gas Co. has sold its 17.5-percent equity interest in the Masspower cogeneration plant to Energy Investors Fund Group. The sale price wasn't released; Bay State said it was more than book value. The 240-megawatt, gas-fired combined-cycle plant provides steam for Monsanto Co.
Bridgeport, Conn., is the planned site of a $260-million, 520-MW power plant. Duke Energy Power Services, United Illuminating Co. and Siemens Power Ventures signed a letter of intent to build the gas-fired, combined-cycle merchant plant.
President Clinton appointed James J. Hoecker chair of the Federal Energy Regulatory Commission. Hoecker, former commissioner of the FERC, replaces Elizabeth Moler who was appointed deputy energy secretary at the Department of Energy.
Walter Massey, president of Morehouse College, was selected by Secretary of Energy Federico F. Peña to replace Robert Hanfling as chair of the Secretary of Energy Advisory Board. Also at SEAB, Skila Harris was elected executive director. Prior to her election, Harris was special assistant to Vice President Al Gore.
Enron Corp. promoted Cynthia C.
An Editorial Response:
Some critics wants PMAs out of the electric business. But that could leave market power to a few, large monopolies.
Department of Energy Secretary Federico Peña observed in an address at the recent annual meeting of the Edison Electric Institute: "The [electric utility] industry is incredibly diverse, with investor-owned utilities, municipalities, cooperatives, the federal power system, independent power producers, marketers and others.
An interview with Ralph Masiello
and Sue Scott of ABB
The big, traditional projects in automated meter reading have really stalled, because utilities are no longer assured of a return on investment."
That warning comes from Ralph D. Masiello, vice president and general manager, ABB Power T&D Co. Inc., the leading manufacturer of electric meters in North America.
"We used to understand the economics of AMR. Just compare the cost of AMR against the cost of metering. But now the economics have changed.
Is it now worth the investment to install smart meters, complete with two-way communication?
The meter has always been the "cash register" in the basic operations of the utility business. Now it is also becoming a vital communications link, carrying information between a utility and its customers. The meter can supply information critical to customer retention and value-added marketing, as well as more effective system operations.
In choosing from among the wide range of metering options available today, a utility should find a technology that fits its business model.
Open-access tariffs hold the key to capturing the gains promised by electric restructuring.
In a restructured electric industry, unbundling the cost of the wires from power generation may well prove more important than dealing with stranded costs. In fact, stranded costs eventually will take care of themselves, whether by direct recovery, indirect recovery or no recovery. Without proper unbundling, however, a restructured industry could force competitors to pay inflated access fees to the distribution utility.
The matter has drawn a lot of attention.