Federal Energy Regulatory Commission

Tightens postings rules for transmission discounts; expands jurisdiction on stranded costs in municipal annexations.

The Federal Energy Regulatory Commission on Feb. 26 revisited its Order 888 open-access transmission decision, reaffirming its core framework but making changes by granting rehearing on two key issues.

Stranded-cost recovery associated with municipal annexation was revisited. In addition, the FERC updated the discounting of transmission services (See, Order 888-A, Docket Nos. RM95-8-001, RM94-7-001, and RM95-9-001).

Wisconsin Electric Power Co., outbid about 60 companies to supply electricity to Chicago's Public Housing Authority, now served by Commonwealth Edison Co., which says it will refuse wheeling services. The housing authority says the deal with WEP would allow it to shave about $5 million off its $10-million, annual CE electric bill. The authority currently pays CE roughly 7.2 cents per kilowatt-hour, but would pay less than 3 cents per kWh to WEP, excluding wheeling charges. The dispute may well end up before the Federal Energy Regulatory Commission.

Two months ago in this space, I interviewed a power marketer and an independent power producer who sit on the operating and engineering committees of the North American Electric Reliability Council. What did they think of NERC, a group formed to prevent large-scale power outages and made up largely of volunteers from investor-owned electric utilities? Were they treated fairly? Did they have a chance to influence policy?

In general, my two "outsiders" felt satisfied with their status on the committees, though some skepticism emerged about NERC's internal decision-making process.

"It's going to take a lost of time to understand all the pies."

It's almost spring. There's a new energy secretary(emisn't there? And at least for new electric restructuring bills in Congress. Sen. Frank H. Murkowski (R-Alaska) is chairing "workshops" on deregulation at the Energy and Natural Resources committee.

Everyone's wondering: Which bill take hold? Where will it be and how will it look by the end of the legislative session: dead, alive, or limp?

A control area is like an airport (em too many planes, not enough runways.

SAN FRANCISCO, CALIFORNIA, AUGUST 21, 1996 - 8:35 A.M.

On Saturday, Aug. 10, 1996, a power outage left more than 4 million Californians without electricity, prompting the California Public Utilities Commission to conduct emergency hearings. Witnesses appeared from electric utilities and a host of federal and state agencies, including the Bonneville Power Administration, the U.S. Department of Energy, the Federal Energy Regulatory Commission and the Western Systems Coordinating Council.

The City of Alma, Mich., has asked the Federal Energy Regulatory Commission to consider whether Consumers Energy is entitled to recover stranded costs from customers in the municipality that switches from CE's system to a municipal electric system if the city creates one.

A consultant hired by Alma already has determined the city could own and operate a municipal utility, which would result in cost savings in excess of 20 percent. The savings estimate has been challenged by CE, formerly Consumers Power Co., because the analysis does not contain a stranded-cost payment.

The Heritage Foundation's recently released report, which finds that national electric deregulation would benefit consumers through lower electric rates, better service and more jobs, has the endorsement of a key policymaker.

If Congress passes a bill to deregulate electric markets, the average consumer's monthly electric bill could fall by as much as $30, according to the report, Energizing America: A Blueprint for Deregulating The Electricity Market, written by Adam D. Thierer.

The report has been endorsed by House Commerce Committee Chairman Thomas J.

The Truckee Donner Public Utility District has asked the Federal Energy Regulatory Commission to resolve an Order 888 transmission dispute with Sierra Pacific Power Co.

Truckee buys most of its power from SPP but wants the freedom to shop around for less expensive electricity from other suppliers. Truckee is located high on the Eastern slope of the Sierra Nevada, within SPP's service territory and is not connected with any other utility.

The Federal Energy Regulatory Commission ruled that the Iowa Utilities Board's decision to implement an Iowa statute, which obligates electric utilities to purchase power from qualified facilities at rates in excess of the purchasing utilities' avoided costs, is preempted by the Public Utility Regulatory Policies Act (Docket No.

The Federal Energy Regulatory Commission set a hearing for a proposal by New England Power Co. to divest its generating assets and add a termination charge reflecting generation costs that will be stranded due to early service termination.

This move, made on Jan. 29, marks the first time the FERC will consider a case-specific proposal for dealing with stranded costs in the context of corporate restructuring proposals, as allowed by Order 888 (Docket No. ER96-2367).