Is One Merger as Good as Another?
In late November, the Federal Energy Regulatory Commission (FERC) put off immediate approval of the proposed merger between The Washington Water Power Co. and Sierra Pacific Resources (to form "Altus"), and set the case for hearing. The reason? The FERC doubted whether the merger would achieve operational efficiencies between the two noncontiguous utilities.
Is One Merger as Good as Another?
In late November, the Federal Energy Regulatory Commission (FERC) put off immediate approval of the proposed merger between The Washington Water Power Co. and Sierra Pacific Resources (to form "Altus"), and set the case for hearing. The reason? The FERC doubted whether the merger would achieve operational efficiencies between the two noncontiguous utilities.
The Federal Energy Regulatory Commission (FERC) has released proposed rules for real-time information networks and standards of conduct, a "critical" supplement to its electric transmission open-access NOPR (Docket No. RM95-9-000). The FERC wants all utilities to set up information networks that give wholesale sellers and purchasers of electricity equal access to information concerning availability and prices.
The Federal Energy Regulatory Commission (FERC) has revised its policy on potential abuses by affiliated power marketers, lifting restrictions on marketing transactions involving affiliates that do not have captive customers. The changes stem from a case involving USGen Power Services, L.P., an affiliate of Pacific Gas & Electric Co. (PG&E) that sought to market power to and from affiliated and nonaffiliated entities, including exempt wholesale generators (EWGs) and power marketers, but not to PG&E (Docket No.
If you attended any energy conference in the past year, even one on natural gas, I am confident that at least one panel was devoted to the restructuring of the electric industry.
The merger voltage (I) is rising on the electric grid, but it remains to be seen which will win out: current (E) policy or resistance (R) to it.
To what extent should regulation yield to market forces in setting wholesale electric prices? The Federal Energy Regulatory Commission (FERC) posed this question when it sought comments on whether open transmission access would eliminate the need for anything like traditional rate regulation.
It appears that The Washington Water Power Co. (WWP) and Sierra Pacific Power Co. (SPP), which were hoping for a quick OK on their proposed merger to form "Altus," may have been in the wrong place at the wrong time. Instead of a perfunctory approval, the WWP/SPP merger now may become the test case for evolving merger policy at the Federal Energy Regulatory Commission (FERC).
Perhaps the utilities should have seen it coming. In approving the Midwest Power Systems, Inc./Iowa-Illinois Gas & Electric Co. merger, FERC Commissioners William L.
As I began to write this column, the California Public Utilities Commission (CPUC) was slated in less than 30 minutes (this time, for real) to unveil its final proposed plan to restructure the electric utility industry. After the deed was done, on Wednesday, December 20, I logged on to ftp.cpuc.ca.gov and downloaded the text of the two opinions, issued by California commissioners Daniel Fessler and Jessie Knight.