Perspective
A face-to-face interview with FERC Chairman Pat Wood III.
Bold. Fearless. Relentless. These are the words now being used by both critics and supporters to describe Federal Energy Regulatory Commission Chairman Pat Wood III.
FERC's recent policy initiatives and directives mark a strong shift from what was last year regarded as a more reluctant commission.
People
New Positions:
Rep. Joe Barton, R-Texas, stepped into the role of chairman of the House Energy and Commerce Committee, succeeding Rep. Billy Tauzin, R-La., who is leaving Congress.
Duke Energy named David Hauser as its permanent CFO. He had been acting CFO since November. He succeeds Robert Brace, who resigned.
Perspective
Wisconsinites don't fear 'Day 2.' But let's get the grid rights right.
While working for the Wisconsin Public Service Commission (PSC), I have grown accustomed to the friendly advice frequently offered by regulatory colleagues and utility executives in higher-cost areas to the East.
A new approach to rate design.
As energy markets have evolved in the late 1990s away from cost-based transactions to competitive market-based transactions, the exposure to market risks for the variable cost of supply has substantially increased.1 Reflected in these market risks are the diminishing reserves for North American gas supply, which has created conditions of extreme volatility in gas supply. The added market risk is compounded by the sensitivity of some retail load customers to weather conditions.
BYLINE
As a former independent power producer, George Lagassa is sympathetic to the woes of the merchant power industry. Until just a few years ago, he held the license to a micro-hydro qualifying facility (QF) in New Hampshire, so he understands what it takes to compete in a regulated-franchise industry. Yet, as the principal of Mainstream Appraisals in North Hampton, N.H., Lagassa is also a dedicated pragmatist. He sees the industry's consolidation trend as a sort of correction in the U.S. power market.
Frontlines
Is FERC the rightful heir?
The possibility that energy legislation drafted last year won't pass in 2004 has created a power vacuum. Who now is czar of electric utility reliability? Language in the proposed bill would have answered that question. But when Congress demurred, did that imply an endorsement of the ?
Business & Money
The consequences of exuberance are all around us.
Much of the 160 GW of new generation capacity added to the U.S. inventory since 1998 is now under water, economically speaking. At a per-megawatt cost of $300, this represents $50 billion of investment-much of which is concentrated in Texas (23 GW), Illinois (14 GW), and Georgia (11 GW). The key question for both merchant and other plant owners is how long it will take for plant values to recover.
Commission Watch
FERC's AEP ruling begs the question: Can the feds bypass states that block transmission reform?
In its search for the perfect power market, the Federal Energy Regulatory Commission (FERC) at last has joined the battle that lately has brought state and federal regulators nearly to blows. A recent ruling puts the question squarely on the table:
Perspective
Locational pricing makes the network secure, since the utilities and other market participants get 'paid' to monitor the grid.
The recent pressure on the board and stakeholders of the Midwest Independent Transmission System Operator (MISO)-to postpone the startup of energy markets and concentrate instead on "reliability"-is truly unfortunate. It allows opponents of restructuring to continue to pose a false choice: You can have markets or you can have reliability, but never both.
Letters to the Editor
To the Editor:
"Frontlines" from the Nov. 1, 2003, addressed what Richard Stavros called "AEP's Gutsy Gambit." In the process of panning AEP's strategy, Mr. Stavros demonstrates no understanding or appreciation of the state law issues he purports to address in his essay. I am responding because, by unmistakable implication, Kentucky is one of the "certain state regulators" he repeatedly takes to task.