CGT Suggests New Regulatory Model
In response to a request for comments on negotiated terms and conditions of service, the Columbia Gas Transmission Corp.
Federal Energy Regulatory Commission (FERC)
Order 888 Petitions Strong on Stranded Costs
About 90 parties have filed petitions seeking changes to Order 888. Claiming "errors," the National Association of Regulatory Utility Commissioners (NARUC) asked the Federal Energy Regulatory Commission (FERC) to reverse its assertion of:
s Jurisdiction over unbundled retail transmission services
s "Primary" authority over retail stranded-cost recovery when retail consumers convert to wholesale
s "Backstop" authority to provide stranded-cost recovery when an end user changes power suppliers under a state-established retail wheeling system.
First Nonjurisdictional Utility Uses Order 888 "Safe-Harbor"
The Federal Energy Regulatory Commission (FERC) on May 29 found that a nonjurisdictional utility's voluntary open-access tariff, with certain modifications, would meet the electric transmission comparability standards established by Order 888. In the first case of its kind, the South Carolina Public Service Authority (SCPSA) has agreed to satisfy the reciprocity requirement that it offer nondiscriminatory transmission services to obtain open-access service from public utilities (Docket No. NJ96-1-000).
SCPSA submitted the open-access tariff before Order 888 came out.
Frontlines
It's August again. In Washington. Anyone with any sense is looking to get out of town and hole up at the beach. Anyone, that is, except a magazine editor.
When I wrote this column on July 11, Rep. Dan Schaefer (R-CO) had just concluded a news conference to announce his "Electric Consumers' Power to Choose Act of 1996." Reams of testimony were pouring in, demanding to be read. Faxes arrived nonstop all afternoon with offers from experts to provide comments, quotes, or some unique spin on the day's events.
Special Report Developing Competitive Power Markets: The Planning Stages
A special report
on transmission,
power pools, ISOs,
and the fallout from FERC Order 888."WHAT IS NEW IN THE INDUSTRY IS
not the conclusion that coordination in operations is needed to avoid chaos.
Electric Restructuring: To and Fro
Two more states at opposite ends of the country have acted substantively on electric utility restructuring (em one moving full speed ahead toward unbundling of wholesale "merchant" services, the other seeking to slow down the transition to retail wheeling.
The Nevada Public Service Commission (PSC) has released draft sections of a report on electric industry restructuring that was scheduled to go to the state legislature in June.
Primergy Merger Raises Claims of Market Power
Madison Gas and Electric Co. (MGE) has asked the Federal Energy Regulatory Commission (FERC) not to approve the proposed merger of Wisconsin Energy Corp. (WE) and Northern States Power Co. (NSP) to form "Primergy." MGE claims that the merger would not only subject Wisconsin's electric consumers to higher prices, but severely impair competition.
According to Mark Williamson, MGE senior vice president of energy services, the Primergy merger would create market concentration in generation and transmission, resulting in market power abuses and anticompetitive conduct.
Filing Announces New Generation of Mergers
Two utility merger lawyers at LeBouef, Lamb, Green & MacRae predict that the Federal Energy Regulatory Commission (FERC) will continue to receive many merger applications, though some will differ from the classic merger between neighboring utilities. Douglas W. Hawes and Samuel Behrends IV have filed comments in the FERC's merger rulemaking proceeding, recommending that the FERC implement "fast track" proceedings for the next generation of mergers.
A State Legislator Looks at Retail Wheeling
As FERC moves forward, most state legislators have remained content to sit back and wait for others to act. Part of this reticence stems from politics—the difficulty of changing course, invading someone else's turf, or tackling a new subject outside one's area of expertise. Legislators view problems differently than do regulators.
Lawmakers see different imperatives than regulators or industry execs, such as protecting the tax base for the local community.
Pipelines: Beware of Riptides
Gas restructuring didn't end with Order 636, it just outran the regulators. Now the rules come from the downstream dealmakers.
Gas restructuring didn't end with Order 636, it just outran the regulators. Now the rules come from the downstream dealmakers.