1 See "" by Energy Ventures Analysis Inc. www.evainc.com

2 See "", published in June 2000 by PJM's Market Monitoring Unit, p. 2. In the year 2000, in five NERC power regions, natural gas represented more than 10 percent of total generation: ERCOT 53.3 percent, SPP 28.4 percent, NPCC (NY/NE) 25.6 percent, Florida (FRCC) 23.8 percent and WSCC 21.8 percent. In PJM only 8.7 percent of generation was gas-fired. Source: Form 759 and 900 data as complied by EVA, Inc.

3 , April 24, 2001, p. A-21.

 

News Digest

 

Frontlines

Price Cap Follies

Mergers & Acquisitions

NSP + New Century. The Federal Energy Regulatory Commission OK'd the merger of Northern States Power Co. (NSP) and New Century Energies Inc. (NCE), to form Xcel Energy Inc., on condition that the new company would join the Midwest Independent System Operator. FERC Docket No. EC99-101- 000, Jan. 12, 2000, 90 FERC ¶61,020.

* Rate Pancaking. The FERC found no problem with transmission rate pancaking with the MISO condition, even though NCE subsidiary Southwestern Public Service Co. (SPS) belongs to the rival Southwest Power Pool.

An alternative measure of performance - not based on dividends, earnings growth or P/E ratios.

How to place a value on a utility company? That is the question.

The traditional models no longer work very well. Dividend discount models will not work well if utilities cut dividends and buy back stock to return capital to the shareholders. Earnings growth offers no reliable performance gauge either, as utilities acquire or divest large amounts of capital. Restructuring charges often become necessary to shift resources to their best use.

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.

Albert V. Ruggiero was elected vice president for South Jersey Industries Inc. Ruggiero also serves as senior vice president, corporate development for SJI's principal subsidiary, South Jersey Gas Co.

The Bonneville Power Administration announced four new senior vice president positions. Harvey Spigal will return to general counsel after heading BPA's transmission functions for the past two years. BPA's corporate group will be headed by Steve Wright. Paul Norman was named permanent head of the power business line. Mark Maher will head the transmission business line on an acting basis.

Cheryl W. Gris´e was promoted to senior vice president, secretary and general counsel for Northeast Utilities and its subsidiaries. She replaces Robert P. Wax, who left NU to return to private law practice.

Houston Industries Trading and Transportation Group appointed Patrick J. Strange vice president, physical gas trading east division for NorAm Energy Services Inc. Strange joined the company in 1995, serving as director of gas trading.

DTE Energy Trading named Dowell Hudson director, business development and wholesale marketing.