For The 21st Century

Interviews by

So it begins again. After several financially tumultuous years, executives at many of the nation's top utilities can once again look to the horizon and ask the growth question worthy of a Caesar: "What worlds to conquer?"

Utility executives are emboldened by bulging free cash flows, improved credit quality, lower operations and maintenance costs, favorable regulatory treatment, growing service territories, and increasing demand for power.

 

News Digest

 

Off Peak

November 1, 2000

Customers Move On

Oracle's energy director tells Congress how new-economy firms are taking reliability concerns into their own hands.

 

Frontlines

Scare Tactics

The Wall Street Journal is goading Congress to act. And it might just work, if the warnings come to pass.

On May 8 ISO New England predicted it would have enough electricity to meet peak demand this summer. But how much demand are you gonna see at $6,000 per megawatt-hour, which was the ISO's prevailing price that day from 2 p.m. to 6 p.m?

Gas Executives' Forum

 

They see utilities responding, but fear outlying areas are overlooked.

Despite reports of year 2000-readiness from virtually all electric utilities, and a promise from the U.S. Department of Energy to pressure the laggards, some customers still fear being left in the dark on Jan. 1, 2000. That view may surprise some, but it emerged clearly from the conference held in Chicago August 5-6 by the North American Electric Reliability Council, to update utilities and their customers on electric industry progress in Y2K problem mitigation.

CUSTOMER SERVICE LINKED THE FIVE FINALISTS OF THE 1998 ULTRA competition, with all addressing, and improving, some aspect of serving end users.

The contest winner, Florida Power & Light Co., combined old hardware with new software and other innovations - such as using the Internet - to address a problem that plagues many utilities: how to cut the number of just-paid delinquent customers who call for power reconnects.

IN THE DRIVE TO MATCH INFORMATION TECHNOLOGY SYSTEMS WITH THE

demands of "deregulatory" standards, utilities are investing billions in information technology (em some launching new business lines from their experience.

Worldwide, utilities are investing $20 billion; electric utilities pony up the most: $12 billion each year, according to Newton-Evans Research Co. An average U.S. electric utility will invest $43 million this year; a gas utility will invest $9 million.

Peabody COALSALES Co. agreed to provide Minnesota Power as much as 2.5 million tons of low-sulphur coal each year. Coal will be supplied by Peabody affiliate Big Sky Coal Co. Big Sky's contract with the power company ends in May; the new agreement runs through 1999. Terms of the deal weren't released.

The Georgia Public Service Commission begins a series of workshops on electric industry restructuring next month. The workshops will examine national efforts, consumer ramifications and environmental and energy efficiency issues. Stranded costs also will be targeted.