or Power Markets?
In their article, "Curbing Market Power: The Larger the Better" (Apr. 15, 1996, p. 10), Christopher D. Seiple and Douglas M. Logan show that market-share indices can be derived from commercially available databases. The authors reference their soon-to-be-released study, U.S. Electric Utility Industry Mergers and Acquisitions, as a source for further market-power assessments.
The topic is timely. The U.S.
Probably the quickest way to get punched out in Toronto is to call Canada the 51st state. But let's face it,
the border is getting murky, like power markets.
Aren't we supposed to be importing power from Canada? Didn't the NIMBY syndrome kill off baseload generation construction, making our provincial neighbors the source of our power and raw materials? Then why are companies like Northeast Utilities suddenly seeking permission to export power to the provinces?
The Oklahoma Municipal Power Authority (OMPA) and the Public Utilities Board (PUB) of the City of Brownsville, TX, have announced their intent to form a municipal power pool spanning four states. OMPA is a full and partial requirements wholesale supplier to 35 municipal electric systems in Oklahoma. PUB owns coal- and gas-fired generation plants. The two entities offer a combined supply resource of about 800 megawatts, but rely on the transmission system of Central and South West (CSW).
The prospect of deregulation has induced a wave of mergers among electric utilities. Most of these mergers would fail an antitrust review because, by combining generation assets of interconnected utilities, they have substantially reduced potential competition in generation.
Since the federal Court of Appeals decision in the Calvert Cliffs case over 25 years ago, no power plant may be built without a thorough socioeconomic impact statement. Yet, schemes to alter the entire supply system of a state - or even the nation - are currently proposed with only cursory attention to socioeconomic consequences.
Filings Against FERC's Pro Forma Tariffs
AS ONE MIGHT EXPECT, THE VARIATIONS REFLECT THE HISTORIC TENSION BETWEEN NATIVE LOAD AND WHOLESALE TRANSACTIONS.
Six midwestern utilities have agreed to establish an independent system operator (ISO) to ensure nondiscriminatory open access to their combined bulk-power transmission systems.
Plans for the "Midwest ISO" should be filed at the Federal Energy Regulatory Commission (FERC) late in 1996. Members include American Electric Power Co. (AEP), Centerior Energy Corp., CINergy Corp., Detroit Edison Co., Northern Indiana Public Service Co., and Wisconsin Electric Power Co.
Forecasts Send ROEs Wide of the Mark
In a recent "Offpeak" ("Forecasting is Just That," Jan. 1, 1996, p. 54), David Foti and Clay Denton report data showing the percentage of error found in various seven-year forecasts of natural gas prices (1988-94) produced by the American Gas Association (A.G.A.), Energy Information Administration (EIA), DRI/McGraw-Hill (DRI), Gas Research Institute, and WEFA Group. These errors ranged from approximately 50 to 95 percent.
Divest yourself of generating plants or allow retail sales by competitors, and PURPA's mandatory purchase clause in section 210 will no longer hold.
That's the basic deal to be offered to investor-owned electric utilities under the Electric Power Competition Act of 1996 (H.R. 2929), a new bill to amend the Public Utility Regulatory Policies Act (PURPA) introduced by Rep. Edward J.
What are the essential characteristics of the system of governance that will be required for a new, North American electric industry with interconnected and interdependent transmission networks and trading areas?
Electric transmission networks are natural monopolies, as are the many independent network
control systems that coordinate the use of generators and loads and preserve system reliability.