Bills that would have restructured electric markets in Illinois and Oregon have died due to lack of support.

A bill, H.B. 2821, which would have opened the Oregon electric market to competition by October 2001, has died in the Oregon House, lacking the 31 votes needed for passage. Meanwhile, the Illinois Senate has decided to postpone until the fall its deliberations on the state's proposed electric restructuring bill, which has the approval of the Illinois House of Representatives.

Industrial customers and consumer groups supported the Oregon bill.

PacifiCorp has made a cash offer for The Energy Group PLC, a diversified energy company in the U.K., Australia, and U.S. The boards of directors of both companies unanimously approved the transaction, valued at $9.6 billion in debt and equity.

PacifiCorp Holdings Inc., a wholly owned subsidiary of PacifiCorp, is offering $11.35 per share for The Energy Group. PacifiCorp will assume The Energy Group's $3.8 billion of debt in the transaction.

MCN Investment Corp. and Tennessee Gas Pipeline Co. plan to build a $45-million liquified natural gas plant near the Delaware-Maryland border. The project, named Continental States Peaking Services L.L.C., would liquify, store and vaporize gas beginning in early 2000. It would connect to the Eastern Shore Natural Gas pipeline system, with access to the Transcontinental Gas Pipe Line and Columbia Gas Transmission system.

The National Association of Regulatory Utility Commissioners has elected Susan F. Clark, commissioner of the Florida Public Service Commission, as its representative on the North American Electric Reliability Council. Clark has served as Florida's commissioner since 1991. Commissioner of the North Carolina Utilities Commission, Allyson K. Duncan, also was elected to serve as a NARUC representative. Duncan will represent NARUC on the advisory council to the board of directors of EPRI.

Tony A. Prophet, former new business development v.p.

The PJM Interconnection is what they call a "tight" power pool. As the Federal Energy Regulatory Commission has explained, tight power pools "extensively coordinate" their planning and operations, with central dispatch of generating plants. This coordination builds reliability--one of the long-term benefits, says the FERC, of a tight power pool.

Coordination also builds market power, however. And, as we all know from FERC Order 888, market power in transmission stands as "the single greatest impediment" to electricity competition.

The overwhelming impression is one of growth (em in volume and in the number of participants.

The early 1990s was an anxious period for advocates of emissions trading. Concerns about whether the sulfur dioxide allowance market would ever develop tempered the heady success of the first national emissions trading program implemented by the Environmental Protection Agency under the Clean Air Act Amendments of 1990, Title IV. These concerns were heightened when in May 1992, Wisconsin Power & Light traded 10,000 allowances to the Tennessee Valley Authority.

Appearing as tree huggers, utilities draw skeptical reaction from environmentalists.

At first glance, it looks like the same old story: Environmentalists versus utilities. But this time, the utilities are the ones fighting for the forests (em with a twist.

Utilities, major producers of carbon dioxide, believe they've found a cost-effective way to offset emissions through carbon sequestration, or sinks, which means converting pastures to forests or maintaining old-growth groves.

But environmentalists call it an easy way out.

OTAG Makes Recommendations to EPA

Does cleaner air mean lighter pockets?

The Ozone Transport Advisory Group has recommended that the EPA should let states adopt a range of emissions levels to help meet ozone standards, which could tap into utilities' profits. The proposal comes two years after OTAG was formed to study region-to-region airborne movements of smog, a byproduct of ozone.

Coal-fired power plants and vehicle exhaust are the biggest contributors to ozone, due to emissions of nitrogen oxides and volatile organic compounds.

U.S., rest of the world ponder CO2 emissions, with utilities caught in the middle.

Four months from now, in Kyoto, Japan, international policy negotiators will decide how quickly to curtail carbon dioxide emissions and allay the world's fears of melting ice caps and rising temperatures.

The amendments to the United Nations Framework Convention on Climate Change, or FCCC, are likely to be founded more on world and domestic politics than on science. Industry climatologists, after all, insist the atmosphere is not warming as fast as others predict, and could be, in fact, cooling.

Minnesota has lots of drafts, but no final plan.

So you think your state has been busy? In Minnesota, the 1997 legislative session saw more than a dozen new bills introduced on electric, gas and energy issues.

At the start of the session many expected that electric deregulation would play a major part in the legislative program. However, Gov. Carlson reports now that legislators will defer work on the issue until the 1998 session. Several electric industry deregulation bills were introduced at the end of the session, but when last we checked no hearings had been held.