Federal Energy Regulatory Commission (FERC)

Gas pipeline reform is looming on the horizon like the stealth bomber. It faded from view a couple years ago, when the Federal Energy Regulatory Commission (FERC) completed Order 636 and turned to electric issues. Yet gas reforms are more pressing: They began earlier, their direction is clearer, and their completion is closer at hand. In fact, without a more price-responsive market for gas transportation, we cannot fashion an efficient and integrated energy industry.

This year the Federal Energy Regulatory Commission (FERC) plans to examine the resale of firm natural gas transportation rights, often referred to as the secondary market. The current regulatory structure, which provides for "capacity release" through an electronic bulletin board (EBB), was born in November 1993. How would this secondary market behave under different regulatory or market assumptions?

The Federal Energy Regulatory Commission (FERC) has reviewed network transmission tariffs filed by Wisconsin Public Service Corp. (WPS) and Wisconsin Electric Power Co. (WEPCO) in compliance with a Wisconsin Public Service Commission (PSC) order requiring a FERC tariff that provides network service comparable to the service the utilities reserve for themselves. The case arose out of applications filed at the PSC by four utilities in late 1990 and early 1991.

The Federal Energy Regulatory Commission (FERC) has accepted and suspended tariff filings made by Tennessee Gas Pipeline Co. (TGP), ordering its staff to convene a technical conference on various issues related to TGP's post-restructuring compliance (Docket Nos. RP95-88-000 and RP95-112-000). The issues under investigation include capacity release, storage, and scheduling, as well as TGP's proposed $118-million rate increase. The FERC noted that TGP's customers "have expressed a high degree of dissatisfaction" with service from TGP. Commissioner James J.

The Federal Energy Regulatory Commission (FERC) has opened a paper hearing on electric loop flow issues arising from the unscheduled flow mitigation plan filed by the Western Systems Coordinating Council (WSCC) (Docket No. ER95-215-000). WSCC members have endured loop flow problems in their region for over 20 years. Expanding on previous ideas, the plan includes the coordinated operation of "controllable devices," such as phase-shifting transformers, that can reduce the level of unscheduled flow by altering power flows on parallel alternating current transfer paths.

This fight is for the heart and soul of regulation everywhere. The Federal Energy Regulatory Commission (FERC) won the first round on February 22, but I think there's more to come.

The fight involves incentives for nonutility generators (NUGs). It also touches on PURPA (em the Public Utility Regulatory Policies Act of 1978 (em which guarantees a market to cogenerators or power producers (QFs) who qualify. But more important, this battle involves regulatory philosophy.

After 40 years of wandering in the wilderness as a minority party, House Republicans are ready to slash and burn what they see as a bloated federal bureaucracy. The next two years will demonstrate just how powerful the legislative branch can be when both House and Senate are controlled by a strong-willed party on a mission. Electric industry officials seem optimistic, but cautious, about this Republican revolution.

The U.S. Court of Appeals for the District of Columbia Circuit has overturned a Federal Energy Regulatory Commission (FERC) gas pipeline order, finding that the FERC had failed to support its decision to use a hypothetical capital structure in determining the pipeline's revenue requirement. In setting rates for Transcontinental Gas Pipeline, the FERC found the corporate parent's equity ratio of 16.27 percent abnormally low.

The pending merger of El Paso Electric Co. (EPE) and Central and South West Services, Inc. (CSW) keeps going and going and going. But the issue of "comparability" has yet to be left in the dust. And so another landmark case looms large, giving the Federal Energy Regulatory Commission (FERC) another opportunity to shape future wheeling and merger transactions.