FERC extends deadline: The Federal Energy Regulatory Commission (FERC) extended the Dec. 15 deadline for utilities to join regional transmission grids and said it will set new deadlines for each of four general regions. FERC will issue notices of proposed rulemaking on interconnection agreements and procedures in January and a second notice for pricing these services in April. The commission dropped the deadline after regulators complained FERC left them out of the process and raised questions about the expense of forming RTOs.
New England ISO endorses plan: The board of directors of ISO New England unanimously approved a five-year assessment of the region’s transmission system. The assessment, known as the 2001 Regional Transmission Expansion Plan (RTEP01), is an evaluation of New England’s bulk power system for the period of 2002-2006 and identifies areas of needed improvement. RTEP01 concludes that there are constraints in southwestern Connecticut, southern Maine and eastern New Hampshire.
Path 15 to get facelift: Pacific Gas & Electric Co., the Western Area Power Administration (WAPA) and other private energy companies have agreed to a $300 million deal to upgrade transmission facilities in California collectively known as Path 15. The upgrade will be financed and owned through a 45-45-10 percent split. Public power entities in California, including the Transmission Agency of Northern California, will own 45 percent. Private companies, including Kinder Morgan Power Co., PG&E National Energy Group and Williams Energy Marketing and Trading, and Trans-Elect will have a 45 percent stake. WAPA will act as project manager, retaining 10 percent.
SPP, MISO talk terms: Southwest Power Pool Inc. (SPP) and Midwest Independent Transmission System Operator Inc. (MISO) have reached agreement on terms for the consolidation of the two organizations. Following the approval of both boards and regulatory approval, closing is expected in the first quarter of 2002. The as-yet-unnamed organization will operate in 20 U.S. states and one Canadian province.
Alliance Companies, National Grid form alliance transco: The Alliance Companies and The National Grid Group plc have signed a definitive Participation Agreement outlining how National Grid will manage the Alliance Transco, including investment of $1 billion in start-up and transmission acquisition costs. The agreement was filed with the Federal Energy Regulatory Commission (FERC). Pending two key FERC approvals, the definitive agreement provides that a wholly owned subsidiary of National Grid will serve as the Managing Member of the Alliance Transco. Completion of the transactions outlined in the Participation Agreement is subject to issuance by FERC of orders determining that National Grid is qualified as a non-market participant to be Managing Member and approving the Alliance Companies’ business plan, filed August 27, 2001. With these two approvals, National Grid will assume responsibility for the start-up and operation of the Alliance Transco.
Pepco, Conectiv merger approved: The merger of Potomac Electric Power Co. (Pepco) and Conectiv has been approved by the Pennsylvania Public Utility Commission. Officials of the two companies expect the $2.2 billion merger to be completed during the first quarter of 2002.
PSEG Power wants lead OK: PSEG Power has filed an application with the New York State Public Service Commission for permission to construct and operate a direct generator lead (dedicated transmission line) that would deliver power to the west side of Manhattan from a New Jersey generating station.
AEP looks at Texas retail: AEP Retail Energy is seeking approval to provide energy supply services to large commercial and industrial customers in Texas beginning in January. In a recent filing with the Public Utility Commission of Texas, AEP Retail requested statewide certification as a retail electric provider.
PSEG Power acquires nuclear assets: PSEG Power, through its PSEG Nuclear subsidiary, completed the acquisition of 301 MW of Atlantic City Electric Co.’s ownership interest in three nuclear power facilities: The Salem and Hope Creek nuclear generating stations (Lower Alloways Creek, N.J.) operated by PSEG Nuclear, and the Peach Bottom Atomic Power station (Delta, Penn.) operated by Exelon Generating Co. LLC. The amount of the transaction was $22 million, including nuclear fuel. PSEG Power is a subsidiary of Public Service Enterprise Group Inc. (PSEG). Atlantic City Electric Co. is a subsidiary of Conectiv.
Peabody to build Illinois plant: Peabody Group will build a coal-fired electricity plant in Washington County, Ill. The 1,500 MW plant, named the Prairie State Energy Campus, is scheduled to begin production in late 2002 or early 2003.
Enron sells utility: Enron will sell its Portland General Electric utility to NW Natural Gas for $1.9 billion. The transaction should be finalized by the fourth quarter of 2002.
TXU signs healthcare company: TXU Energy, a unit of TXU Corp., has signed a $150 million, three-year power supply deal with VHA Southwest, an alliance of 22 community-based healthcare organizations. TXU estimates the transactional value for the procurement to be 500-700 million kWh a year, or about $40 million. Demand-side management services are also included.
Duke to break ground: Duke Energy North America will build three new natural gas-fired facilities, adding 2,400 MW. All three should be operational by summer 2003. New Mexico will see a 600 MW project in Deming. Nevada will get a 1,200 MW facility in Apex, and a 600 MW plant will be located in Satsop, Wash.
Panda, Alliant join forces: Panda Energy International Inc. and Alliant Energy Corp. have formed a joint venture to construct and operate a 1,100 MW natural gas, combined-cycle facility in Michigan. Construction is slated to being next spring.
Peabody COALTRADE gains terminal: Peabody COALTRADE Inc. will expand its rapidly growing coal trading business through a new terminal on the Big Sandy River near Catlettsburg, KY. Riverview Terminal, recently leased by Riverview Terminal Co., will be upgraded to blend and transload coal to serve electric generators on the Ohio River. Riverview Terminal, near Huntington, W.Va., is expected to begin operations by the second quarter of 2002 and will have a 2.4 million ton-per-year capacity. The Big Sandy River market, with annual trading volume of approximately 20 to 25 million tons per year, has become a major over-the-counter trading hub and site of the emerging NYMEX futures coal market.
Intermagnetics General Corp.: Philip J. Pellegrino has been named sector president of energy technology and president of SuperPower LLC.
Sempra Energy: Dennis V. Arriola is vice president of investor relations.
Pinnacle West Energy: James M. Levine has been appointed chief operating officer; Warren C. Kotzmann is vice president of business and corporate services.
Allegheny Energy: Ted J. Kleisner has been named director of the board.
Electric Power Supply Association: Stephen Bergstrom, president and chief operating officer of Dynegy, is the association’s chair for 2002.
American Electric Power: Christopher Bakken III has been appointed senior vice president for nuclear generation.
CMS Energy Corp.: David W. Joos has been elected president, chief operating officer and a member of the board.
Silicon Energy: Gilbert Shaw is director for global partners.
Alliant Energy: Michael P. Maley joins as president of its unregulated generation group.
KWI: Michael Laven is chief operating officer.
Encorp: Dennis A. Orwig has been appointed CEO.
Constellation Power Source: Thomas V. Brooks has been named president.