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ELP Volume 78 Issue 2
FirstEnergy wins Pa. state contract: FirstEnergy Services, a subsidiary of Akron, Ohio-based FirstEnergy Corp.,
FirstEnergy wins Pa. state contract: FirstEnergy Services, a subsidiary of Akron, Ohio-based FirstEnergy Corp., was selected to supply most of the electric generation service for several agencies of the Commonwealth of Pennsylvania during the state`s first online electricity generation auction. This change should save the Penn- sylvania Department of General Services $1.7 million, or 5.9 percent, over current energy costs.
Competition is coming to the utility business just as e-business is rewriting the retailing rulebook. Industries as diverse as popular music, office supplies, and stock brokerage are discovering that end-user marketing involves different paradigms when done via the World Wide Web. Conducting transactions online entails new competitive dynamics, and opens the possibility of radically new business models. Nobody has defined any sure-fire formulas at this point-even companies with decades of experi
How low can you go?: U.S. electric power prices decreased for the fifth straight year in 1998, falling at a faster rate than seen previously this decade. Average prices fell to their lowest mark since 1990, the Energy Information Administration said. Price declines were experienced across all major consumer sectors, including the residential sector.
With utility restructuring, integrated utilities are building for the future using regulated companies as they spin off generation into unregulated subsidiaries or divest themselves of traditional generation assets. Regulated transmission and distribution (T&D) companies will continue to serve the roles of power transmission and distribution based upon the utility`s revenues generated by the size of its asset base. This will be coupled with the new regulatory environment dictating the recovery o
Editor`s note: This is the first installment in EL&P`s new special feature, "Utility of the Month." Each month this feature will profile a company that demonstrates exemplary performance in a variety of business practices, including finance, investor relations, operating efficiency and reliability, and most notably, market competitiveness. At the end of the year, these utilities will be considered to receive EL&P`s coveted Utility of the Year award.
When Warren Buffett`s Berkshire Hathaway investment firm bought into Iowa utility MidAmerican Energy, Wall Street treated it like just another capital investment-a fairly conservative one, at that. More recently, when New York`s Kohlberg Kravis Roberts (KKR) agreed to buy a chunk of Dayton Power & Light, the news attracted even less fanfare. After all, from a Wall Street perspective, these were fairly ho-hum deals.
The combined company`s power generating capacity would reach 12,000 MW-5,500 of it in the United States. Its fuel transmission system would reach 58,000 miles of pipeline, extending its lead over Enron and Williams as the largest gas transporter in the country.
The Gas Research Institute (GRI) released the 2000 Edition of its Baseline Projection of U.S. Energy Supply and Demand to 2015, which describes steady growth in overall U.S. energy consumption and very strong natural gas demand growth to meet growing electricity generation requirements.
New Century Energies and Northern States Power recently cleared a key hurdle in their $4.6 billion merger when the Federal Energy Regulatory Commission (FERC) approved the deal without ordering more public hearings into the merger. The merger`s completion, which will result in a new company named Xcel Energy, is expected in the second quarter of 2000.
Sithe Energies Inc. and Cabot LNG have entered into a 20-year gas sales and purchase agreement valued in excess of $4 billion. Cabot LNG`s subsidiary, Distrigas of Massachusetts Corp., will be the principal supplier of natural gas to fuel Sithe`s Mystic Station, a 1,600 MW electric generating plant located in Everett, Mass. Mystic Station is expected to begin commercial operation in 2002.