Beware of a national energy crisis that eclipses California's.

It seems rather elementary in an economic downturn to say that generating capacity will easily match demand over the next few years, especially with all the new plants that have been built lately. But what happens to the supply picture when you factor in a possible economic upswing, with continued high natural gas prices, an illiquid wholesale market, and an aging transmission infrastructure?

One might say, when it comes to FERC, some state public utilities commissions' lack of faith is disturbing—to paraphrase Lord Vader. It's also necessary, as any journalist would tell you. The FERC NOPR on standard market design (SMD)—which completes the "trilogy" of regulation on wholesale markets, as chairman Pat Wood described it—had some state PUCs blasting the NOPR even before its July 31 release.

No one has yet quantified or qualified the devastation to industry reputation, electric competition, or energy companies' future earnings power caused by the current round of energy trading scandals that is shaking the industry to its core.

News Digest

Mergers & Acquisitions

NSP + New Century. The Federal Energy Regulatory Commission OK'd the merger of Northern States Power Co. (NSP) and New Century Energies Inc. (NCE), to form Xcel Energy Inc., on condition that the new company would join the Midwest Independent System Operator. FERC Docket No. EC99-101- 000, Jan. 12, 2000, 90 FERC ¶61,020.

* Rate Pancaking. The FERC found no problem with transmission rate pancaking with the MISO condition, even though NCE subsidiary Southwestern Public Service Co. (SPS) belongs to the rival Southwest Power Pool.

The Natural Gas Supply Association promoted John H. Sharp and Philip M. Budzik. Sharp, the association's chief lobbyist and counsel since 1988, became vice president, federal and state government affairs, and counsel. Budzik, previously director of research and analysis, was named vice president, federal regulatory affairs and technical analysis.

Bob Wentland joined Coherence Technology Company Inc. as research geophysicist. Wentland also is the manager of product development for CoherentVision(. Wentland's career includes 16 years with Shell Oil Co.

CNG Energy Service Corp. appointed Jeff Johnson senior vice president of integrated energy management. Jerome H. Dortmans was appointed vice president of financial trading and risk management.

Alan Wells was named senior vice president of finance and CFO for MidAmerican Energy Holdings Co. and its subsidiary MidAmerican Energy. Wells replaces Phil Lindner who announced his retirement. Wells also will continue to serve as president of the company's nonutility subsidiaries.

Fred D. Hafer assumed office as chairman of the Pennsylvania Electric Association.

The National Association of Regulatory Utility Commissioners has elected Susan F. Clark, commissioner of the Florida Public Service Commission, as its representative on the North American Electric Reliability Council. Clark has served as Florida's commissioner since 1991. Commissioner of the North Carolina Utilities Commission, Allyson K. Duncan, also was elected to serve as a NARUC representative. Duncan will represent NARUC on the advisory council to the board of directors of EPRI.

Tony A. Prophet, former new business development v.p.