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FERC

The King is Dead! Long Live the King!

Enron's fall finds FERC toying with cost-based rates. But let's temper the nostalgia.

Enron may not be dead, but its death rattle is certainly being heard loud and clear. If Enron ever was king, will the new king be a scion that also is an aggressive advocate of deregulation? Or, will it be an aged consort, who yearns to return to the "just and reasonable" standard for rate regulation?
Byline: 

William A. Mogel

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FERC's California Caps: Just Smoke and Mirrors?

Industry experts debate whether so-called “price mitigation measures” miraculously solved the California crisis.

Wholesale electricity prices are lower in California than they were last May, before FERC implemented price caps. But there is widespread disagreement over whether the caps were the cause of the lower prices, or merely coincidental with other downward pressures.
Byline: 

Jennifer Alvey

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Pat Packs a Punch

FERC's new chairman runs roughshod over a reeling industry.

By a vote of 3-1, FERC had crowned the Midwest Independent System Operator—MISO—as belle of the ball. In so doing, it scorned the proposed Alliance Regional Transmission Organization.
Byline: 

Bruce W. Radford

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Who’s Minding The Grid?

Some argue that gas pipelines might substitute … but … nothing will do away with the need for more transmission.

Our nation’s transmission infrastructure is increasingly unable to meet new demands for power created by rapidly changing electricity markets. Although reliability protocols ensure against catastrophic failure, there is ample evidence today that the grid is too congested.
Byline: 

Thomas R. Kuhn

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Waiting to Exhale

Courts Deliberate on the Fate of Order 2000: The transmission industry may have to wait even longer for a final decision on challenges to Order 2000 if FERC gets its way.

Though the D.C. Circuit Court could very well add to the delay in resolving some thorny issues of Order 2000, it appears that the court has essentially given the challengers a partial victory, even before a decision is rendered.
Byline: 

Jennifer Alvey

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Making Markets Work: How ISO Rules Still Cause Problems

How obscured spot prices, unhedgeable basis differentials, unreliable and financially insecure clearing practices inhibit market liquidity.

To date there has been little clarity as to how the physical and financial markets would work together to eliminate the need for continued price regulation, as FERC has proposed.
Byline: 

Becky Kilbourne and Robert Maxant

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Gas Marketers: Oblivious to All the Fuss

New mega-marketers, niche players emphasize opportunity.

Even when the calendar flipped to 2001 and much of the energy industry was swept into the turmoil surrounding the California electric industry restructuring fiasco, gas marketers continued to thrive in the low-supply, high-demand environment.
Byline: 

Mark Hand

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Energy Trading & Marketing: The Evolution of the Deal

Energy traders and risk managers reengineered their business dealings to manage against unexpected political and financial risks posed by California and Enron in 2001.

The rules of energy market survival changed forever in 2001. California and Enron were both humbled by gyrating prices and blackouts in the Golden State, and financial misadventure dethroned the once-crowned king of energy trading. These twin events sent shockwaves through the very foundation of the energy trading and risk management establishment.
Byline: 

Richard Stavros

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