State Legislatures
CALIFORNIA ELECTRIC RESTRUCTURING. California Assemblywoman Diane Martinez, chairwoman of the Utilities and Commerce Committee, has introduced two new bills aimed at protecting consumers in a competitive market. But the measures already have been put on hold for this year. The first bill, AB 579, would cut rates for residential and small-volume commercial customers by 20 percent, rather than by 10 percent as promised in the state's restructuring act, AB 1890.
ON APRIL 1, 1997, nearly four months after Pennsylvania Gov. Tom Ridge (R) had signed the state's Electricity Generation Customer Choice and Competition Act, PECO Energy Co. filed its restructuring plan with the state Public Utility Commission. To bolster the plan, PECO gathered a group of stakeholders to review it and craft a settlement. That agreement, somewhat different from the April restructuring plan, was filed with the PUC on Aug. 25. It became known as the Partial Settlement.
On Oct.
FOR ALL THE ATTENTION FOCUSED ON NEW LAWS AND regulations designed to create competition in electric power markets, too few people seem to grasp how a market can work. That will change, however, now that Pennsylvania is the first large state to embrace market pricing.
Pennsylvania's lawmakers and three of its five utility commissioners have developed a market to deliver the benefits of competition to consumers.
Federal Agencies
Nuclear Plant Fines. The Nuclear Regulatory Commis-
sion has proposed fines totaling $2.1 million against Northeast Nuclear Energy Co. for many violations at the company's Millstone nuclear plant in Waterford, Conn. The fine marks the largest civil penalty ever proposed by the NRC. Northeast Utilities said it will pay the fine, which it called "a necessary and important step toward bringing to closure a very disappointing and difficult chapter in the company's history." The utility said it will not pass the cost onto ratepayers.
Electric Futures.
The American Gas Association elected its board of directors for 1997-98. David W. Biegler, president and COO of Texas Utilities Co., was elected chairman. Richard E. Terry, chairman and CEO of Peoples Energy Corp., was elected first vice chairman and Gary L. Neale, chairman, president and CEO of Northern Indiana Public Service Co., was chosen second vice chairman.
Beth Emery was appointed vice president and general counsel to the California Independent System Operator executive management team. Emery was previously a partner in the law firm of Sutherland, Asbil & Brennan.
IN THE EARLY 1970s, WHEN THE "ENERGY CRISIS" DAWNED, New York told electric utilities to stop advertising to promote electric use. State judges deemed such promotion as lacking in "any beneficial content," or even "detrimental to society." It took an appeal to the U.S. Supreme Court for utilities to win the right to tout their product.
Today's questions target the bottom line: Can advertising boost sales for energy suppliers? If so, what does it take?
WHETHER YOU CALL IT "DEREGULATION" OR "re-regulation," the promised move to competition does not mean less regulation - at least not any time soon.
PITTSBURGH CHALLENGES MERGER; ALLEGES COLLUSION
The city of Pittsburgh has filed an antitrust lawsuit against Allegheny Power Systems Inc., and Duquesne Light Co., to stop the merger proposed by the two companies.
In its Sept. 29 court filing, Pittsburgh claimed the two utilities acted jointly to restrain trade. The city said the companies did this by agreeing to maintain higher rates for electric retail service at two industrial sites targeted for redevelopment zones pending their merger.
WHOLESALE POWER PRICES DURING THE SUMMER OF 1997 REACHED LEVELS MUCH higher than in 1996 - higher than the variable fuel costs of even the costliest units (see Figures 1 and 2). This situation has confounded many observers. Many thought, in spite of forecasts to the contrary, that markets would continue to exhibit excess capacity for years to come. They thought need for new capacity was distant and that hourly markets would not see premiums in excess of fuel costs for marginal units - the so-called "pure" capacity premium - for years to come.
The evidence is in.
THAINE J. MICHIE, general manager of the Platte River Power authority, was named president of the American Public Power Association. Michie has more than 30 years experience in the electric power industry; he has served on the APPA board since 1990.
Lanny P. Waguespack was chosen to head CMS Gas Transmission and Storage Co.'s new Denver office. He also was named director of business development in the western U.S. for the CMS Energy Corp. unit.
Executives at two subsidiaries of Aquarion Cos. were elected to leadership positions at industry associations. Leendert T.