Electric Light & Power Articles, October 1999

Table of Contents

Departments

Customer Systems

Reliability revisited

Raise the issue of reliability at a utility industry party, and you`re likely to go home with a black eye. The subject is very close to the industry`s collective heart, as reader response to the August 1999 Commentary, "It`s reliability stupid!", clearly demonstrates (See "Letters" below).

Avista to deliver usage info

Avista Utilities contracted Atlanta-based software developer Enercom to provide its Energy Depot Internet programs, which provide energy usage data to help residential and small commercial customers increase their energy efficiency. Energy Depot will enable Avista`s 550,000 customers to complete an online survey and obtain personal energy and water profiles and customized efficiency recommendations within seconds of submitting the information.

Online usage history tops value-adds

Online energy usage history tops the menu of value-added services utilities are planning to offer their customers, according to a survey conducted by Atlanta-based Chartwell Inc. (www.chartwellinc.com/research.htm). Some 56 percent of gas and electric utilities are planning or considering giving customers their usage history via the Internet. Another 15 percent already offer some form of the service. Other value-adds, such as onsite power, home security and surge protection, have gained populari

Energy Interactive releases new profiler

Oakland, Calif.-based Energy Interactive (www.energyinteractive.com) released an update to its Energy Profiler load data and pricing analysis software. The update expands the software`s reporting functionality, increases import/export file formats and enhances bill estimation features.

CheckFree, Equifax team on EBP

Electronic billing and payment (EBP) services firm CheckFree and financial data firm Equifax launched EBP services for more than 40 financial institutions in late August. The CheckFree/Equifax relationship is expected to provide numerous financial institutions with access to bills generated by CheckFree billers nationwide.

E-business evolves from cool to strategic tool

E-business has emerged as a vital strategic tool for electric utilities and energy services companies. Utilities are lagging behind many other industries (See Figure 1), but they are quickly seizing upon the opportunities that e-commerce, online customer service and intranet operations management can offer.

eT becomes MainStreet, launches service bundles

After four years of field research, automated meter reading (AMR) developer eT Communications has been re-named MainStreet Networks (www.MainStreetNetworks.com). The new company`s strategy is to take eT`s "premise gateway" AMR technology to the next level, bringing a variety of value-added services to the customers of local and rural utilities.

Utilities join e-billing bandwagon to save costs

Electronic commerce is gaining momentum in the utility business, with almost daily announcements of major companies launching online billing and other e-commerce initiatives.

Energy Marketing

ComEd launches Chicago Solar

To provide renewable energy options to its 3.4 million customers, ComEd plans to team up with Spire Corp., and invest $6 million in a new Chicago solar manufacturing company.

Study examines shifting industrial energy use, future gas demand

The natural gas industry can only hope the past is prologue. Between 1985 and 1992, United States industrial consumption of natural gas increased 3.3 percent annually-nearly twice the rate of competing fuels.

No. 1 priority: ensuring power grid reliability

While electric industry deregulation is moving at varying speeds in different parts of the country, it has become clear to virtually everyone that electric industry deregulation will become reality, and it is vital that important issues concerning electric industry restructuring are addressed.

Info. Technology

Performance metering addresses increasing data needs

Simple energy metering at the point of consumption is no longer adequate in today`s electric utility industry. Every company that expects to survive in the deregulated energy market is developing plans for a performance metering system to address the unprecedented need to measure contractual performance (or compliance) at each interface point.

SageWave integrates GIS into EIP

SageMaker Inc. of Fairfield, Conn., reached an agreement with Geodynamic Solutions Inc. in mid-August to integrate the functionality of Geodynamic`s geographic information systems (GIS) technology into the SageWave enterprise information portal (EIP).

New Products

INTERRUPTER SWITCH

The medium-voltage Mini Switch`s (5 kV, 200 amp) ultra-compact design takes less than one-third the volume of conventional load interrupter switches, measuring only 25.5 inches wide, 25 inches deep, and 66 inches high. The Mini Switch is an air-insulated device, eliminating the potential for fire or hazardous-material leakage associated with oil fuse cutouts. The switch meets IEEE and ANSI standards for medium voltage switches.

FLEXIBLE FIBERSCOPES

Color bulletin describes an expa- nded line of high-performance, flexible fiberscopes that can be used to inspect otherwise inaccessible interior areas of engines, tubing, pipes, and castings. Lenox fiberscopes can pass through openings as small as .140 in. (3.5 mm). The line includes 3.5 mm and 6 mm models with two-way remote articulation (up to 180∞), and 7.5 mm and 10 mm models with four-way remote articulation (up to 140∞). The bulletin lists the diameter, working length and othe

MOTOROLA ACCESSORIES

Color brochure des-cribes accessories for Motorola`s iDEN line of PCS handsets. Audio accessories like headsets, external speakers and remote microphones for various iDEN models (i280, i370, i390, i470, i600 and i1000 as well as r Series products) are complemented by descriptions of carrying cases, car installation kits and chargers. Motorola original nickel cadmium, nickel metal hydride and lithium ion replacement batteries are also offered.

SELECTION GUIDE

The 3M Engineering Selection Guide from 3M Electrical Products Division is available on CD-ROM and uses graphics and video clips to present product information, data sheets, technical information, product specifications, installation instructions and an ordering guide. Up-to-date information on all 3M products, including QS-III splices, QT-III terminations and accessories for PILC cables are included. The CD is hot-linked to the Web and 3M Electrical Products Division`s web site so that the user

FIBER OPTIC LINKS

M6000 and M8000 series fiber optic MicroModems safeguard data at substations and monitoring locations. They transmit and receive analog signals to and from remote locations while providing immunity to lightning and transient spikes, immunity to EMI/RFI, isolation from ground potential rise, and increased bandwidth and extended distances.

STANDARDS RESOURCE

IHS Engineering and Global Engineering Documents released Tech Data Xpress (TDX), an Internet service providing bibliographic data on more than 350,000 standards from over 450 of the world`s standards developers, including AFNOR, ANSI, API, ASME, ASTM, BSI, DIN, IEC, ISO, SAE, UL and the U.S. military. In addition to searching for standards, users can also obtain full standards documents in a variety of formats. More information is available at www.ihsengineering.com.

SUBSTATION MAINTENANCE

Brochure describes how WES Service, part of Waukesha Electric Systems (supplier of medium-power transformers), uses experienced maintenance crews, diagnostic systems, data collection/analysis tools and cost-saving retrofits to develop low-cost, customized service packages to improve the reliability and extend the life of substation equipment.

CABLE LOCATOR

The ARROW is an easy-to-use, highly sensitive locating tool that enables extremely low currents to be detected. It may be used as either a stand-alone passive receiver or in conjunction with an active frequency transmitter. Other features include a frequency modulated audio tone (a sound increasing in volume and peaking when directly over the target line) and one-handed operation with fingertip controls.

People and Companies

Dr. Stephen D. Ban plans to resign as Gas Research Institute (GRI) president and CEO in December.

Dr. Stephen D. Ban plans to resign as Gas Research Institute (GRI) president and CEO in December. GRI appointed Thomas C. O`Laughlin vice president and general counsel and promoted Marlon McClinton vice president and general manager of distribution and end-use programs.

PP&L named John Cotter vice president of energy marketing and trading.

PP&L named John Cotter vice president of energy marketing and trading. Most recently, Cotter served as senior marketing vice president of PP&L EnergyPlus.

GPU Energy named Mark P. OFlynn vice president of finance/rates and comptroller.

GPU Energy named Mark P. O`Flynn vice president of finance/rates and comptroller. Most recently, O`Flynn operated his own consulting business, and prior to that, spent 27 years with the Columbia Gas system.

Alabama Power Company elected Jacki W. Lowe vice president and CIO.

Alabama Power Company elected Jacki W. Lowe vice president and CIO. Lowe replaces Jim Corbitt, who was appointed CIO for Southern Company Generation.

Wisconsin Energy Corp. (WEC) elected Paul Donovan senior vice president and CFO.

Wisconsin Energy Corp. (WEC) elected Paul Donovan senior vice president and CFO. Donovan previously served as Sundstrand`s executive vice president and CFO.

North American Electric Reliability Council (NERC) appointed David W. Hilt director of compliance.

North American Electric Reliability Council (NERC) appointed David W. Hilt director of compliance. Hilt previously served the Mid-America Interconnected Network Regional Council and has been involved with NERC and its various committees for many years.

Avista named David A. Brukardt vice president of investor relations.

Avista named David A. Brukardt vice president of investor relations. Brukardt joins Avista from Harnischfeger Industries, where he served as director of investor and corporate relations.

Entergy formed a new senior-officer position to direct the companys transition to a competitive environment and appointed Richard J. Smith

Entergy formed a new senior-officer position to direct the company`s transition to a competitive environment and appointed Richard J. Smith to fill it as senior vice president of transition management.

Fieldstone Inc. appointed Bradley W. Lingo as a principal with a prim- ary focus in developing infrastructure finance opportunities in Africa.

Fieldstone Inc. appointed Bradley W. Lingo as a principal with a prim- ary focus in developing infrastructure finance opportunities in Africa. He previously served as vice president-international development for El Paso Energy International.

North American Power Brokers changed its name to Enermetrix.com, reflecting its new emphasis on delivering Internet technologies and business process standards.

North American Power Brokers changed its name to Enermetrix.com, reflecting its new emphasis on delivering Internet technologies and business process standards. Enerme- trix.com named Robert W. Heller vice president of finance and risk management. Heller joins Enermetrix.com from Commonwealth Edison, where he was chief risk officer.

PG&E Energy Trading named Stephen S. Greene vice president of structuring, analysis and power.

PG&E Energy Trading named Stephen S. Greene vice president of structuring, analysis and power. Greene retains the responsibilities of PG&E Generating`s market and strategic assessment vice president, a position he took in May.

KeySpan Energy named Coleen A. Ceriello strategic planning vice president. Ceriello first joined the strategic planning area in 1996.

KeySpan Energy named Coleen A. Ceriello strategic planning vice president. Ceriello first joined the strategic planning area in 1996.

After 34 years in power plant related activities with the U.S. Navy, Exxon and Siemens, R. Baird Stephenson stepped down as president

After 34 years in power plant related activities with the U.S. Navy, Exxon and Siemens, R. Baird Stephenson stepped down as president and CEO of Siemens Power Corporation (SPC). James H. Nordahl succeeded Stephenson. Most recently, Nordahl served as SPC`s nuclear operations executive vice president and general manager.

Coastal Corp. elected Anthony W. Hall Jr. board director.

Coastal Corp. elected Anthony W. Hall Jr. board director. Hall serves as Houston`s city attorney and has served as Metropolitan Transit Authority of Harris County chairman, elected twice to city council positions, and served in the Texas house of representatives.

Technology

Equipment oil testing: revamping to control costs

Idaho Power Co. achieved savings of more than $80,000 in its oil testing program over a 16-month period after creating a position responsible for managing the system`s oil testing program as one of its stated job duties.

Premium power technologies put to test

American Electric Power (AEP) and Siemens Power Transmission & Distribution have been awarded a contract by EPRI to test whether new technologies are able to improve power quality at a reasonable cost for customers in an industrial park.

Technology At Work

PP&Ls air quality equipment

PP&L will begin construction of a selective catalytic reduction system in November at its two coal-fueled units at the Montour plant near Washingtonville, Penn. Plans call for the SCRs (contracted to DB Riley) to be in service by May 2000 on Unit 2 and by May 2001 on Unit 1. PP&L is also installing two new replacement electrostatic precipitators (contracted to Wheelabrator Air Pollution Control Inc.).

SPX acquires transformer company

SPX Corp. will purchase North American Transformer Inc. from Rockwell International Corp. At press time, the transaction was expected to be completed by the end of September. SPX plans to broaden its product and service offerings with the combination of its Waukesha Electric Systems with North American Transformer.

Plug Power files for IPO

Plug Power Inc. filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of its common stock. Plug Power designs and develops on-site electricity generation systems using fuel cells for residential applications.

Calpine buys combustion turbines

Calpine Corp. will purchase 18 F-class combustion turbines from Siemens Westinghouse Power Corp. Beginning in 2002, Siemens Westinghouse will deliver six turbines to Calpine through 2004.

DOE funds coal-renewable fuel

The Department of Energy will provide $5 million of the $21 million EnerTech Environmental Inc., Atlanta, needs to build a process development facility for up to 100 tons/day to illustrate its SlurryCarb process, which converts organic wastes into E-Fuel, a low-sulfur fuel supplement.

Mobile computers add efficiency to ROW and pipeline inspections

Atangle of brush and tall tree limbs greets the Baltimore Gas & Electric (BG&E) forestry contract crew as it arrives to clear a suburban right-of-way (ROW).

Features

Industry Report

HoustonStreet.com plans national rollout

More than four months ahead of schedule, Houston Street Exchange extended coverage of HoustonStreet.com to every power trading region in the United States. Originally planned for a national rollout after January 2000, the company credited its early expansion to overwhelming user response to the new web-based exchange.

New York ISO delays start

After nine days of a simulated market test, participants in the planned New York Independent System Operator (NY ISO) decided to postpone its launch until mid-October.

CME launches weather derivatives

The Chicago Mercantile Exchange (CME) launched its Weather Derivatives Heating Degree Day futures and options on Sept. 22. The contracts are based on indices of heating degree days and cooling degree days in 10 cities across the country.

APX secures funding, opens new office

Automated Power Exchange (APX) secured $15.5 million in equity funding to finance its plans to roll out additional exchanges in the United States and international markets.

Green Mountain snubs New Jersey

Accusing New Jersey regulators of, well, over-regulating deregulation, Green Mountain Energy`s GreenMountain.com said it`s not interested in the state`s restructuring electricity market.

Holding companies rule; top 10 sell 28% of U.S. Electricity

The top 10 investor-owned utility holding companies sold about 28 percent of the electricity sold by U.S. utilities in 1998 (See Table 8, "IOU holding companies-25 largest generators").

Utility of The Month

Amen, brother!

I just finished reading Mr. Burr`s comments concerning reliability ("It`s reliability stupid!", EL&P, August 1999).

Your commentary was perfect! The same goes for ComEd as for ConEd.

Your commentary was perfect! The same goes for ComEd as for ConEd. Both neglected their first duty: to keep the lights on and AC humming. I hope this served as a wake-up call to the industry, just as the TMI-2 accident did 10 years ago. The problem then was (and in the power distribution part of the business still is) that top management gets preoccupied with the glamourous new areas and pays for "new ventures" by trimming the budgets of the "old and routine" parts of the enterprise, doing the m

Its the market, moron!

In reference to your commentary about the American utility market, all I can say is, "It`s the market, moron!" For years REGULATED utilities-and Con Edison of New York is one of them-have had to justify all the building of all new transmission & distribution to their respective PUCs. All the while being limited to what return could be received on their investment.

Youre right-its reality, stupid! Problem is, the coming age of deregulation,

You`re right-it`s reality, stupid! Problem is, the coming age of deregulation, complete with the "do whatever it takes to get the sale" mentality of the retail world, is not going to improve these reliability concerns.

This is just a quick note to commend your article Incredible Shrinking Universe in the recent issue of EL&P.

This is just a quick note to commend your article Incredible Shrinking Universe in the recent issue of EL&P. With the many little charts, it was about the most useful thing I`ve read in recent months.

JOB GETTING YOU DOWN?

It can happen gradually over a number of years, or it can take place overnight. In either case, the result is the same: You become aware that your job is thwarting your growth, keeping you from activities in the company that interest you, boring you to death.

Competitive utilities transform corporate cultures

Several years ago, utility companies began the change process by studying market potential, creating branding initiatives and streamlining overhead so they could transform existing services into products for the new millennium.

Industry News

DOE pushes utilities for Y2K readiness

The day that lined up four "9s" across the calendar passed uneventfully for the majority of North America`s electric utilities, as a once-in-a-century occurrence helped dispel fears about the nation`s electricity supply in the new millennium.

Anticipating antitrust concerns nets M&A success

Once the chief executive officers (CEOs) of two electric utilities or energy firms have agreed upon terms of a possible merger, they must satisfy the antitrust concerns of state and federal regulators before the merger can be implemented. When reviewing the effects on competition of a proposed horizontal merger (i.e., a merger of two firms that offer the same or similar products on the market), the Federal Energy Regulatory Commission (FERC) uses a delivered price test.

HYDRO FACE-LIFT

A new stainless steel runner is being installed inside the Pensacola Dam powerhouse, Oklahoma`s oldest hydroelectric facility. The Grand River Dam Authority (GRDA) is upgrading one unit per year for seven years. The total cost of the upgrade is estimated at $30 million and is expected to be a major boost to capability at the 59-year old facility. Photo courtesy of GRDA.

New Zealand companies eye U.S. Market

Note: Steven Wood traveled to New Zealand in June as a guest of the New Zealand Trade Development Board. During his week-long visit, he interviewed more than 20 companies involved in the utility industry, government officials and utility companies to ascertain the pros and cons of New Zealand`s reform and New Zealand companies` interest in the U.S. electricity market.

Coal market gears up for next millennium

Historically, coal has been one of the main fuels of choice for electric power generation in the United States over the past 50 years. With a continuing strong growth, coal demand can be expected to increase. However, the continuation of these trends into the next millennium will also depend upon changes in electricity and coal market structures, national environmental policy, and technology trends.

Natural gas price trend shifts upward

Contrary to most standing predictions, natural gas prices may be getting ready to start climbing. The electric power industry`s consumption is driving growth in the natural gas industry, and the gas producers just can`t keep up. Low natural gas prices combined with leaps in efficiency through technological advances, such as combined-cycle applications, have created "great value" in gas-fired electric facilities, according to Forrest Hoglund, Enron Oil & Gas chairman, recently retired. Enron Oil

NSP to join Midwest ISO:

Northern States Power will join the Midwest ISO under an agreement reached with several Wisconsin utilities and consumer groups. NSP previously promised to join after its merger with New Century Energies, but the agreement obligates NSP to join regardless of the outcome of the merger proceedings.

CP&L to merge with FPC:

Carolina Power & Light Co. will acquire Florida Progress Corp. for $5.3 billion, resulting in a total generating capacity of 18,500 MW, revenues of $6.7 billion and 2.5 million customers.

Reliant Energy to purchase Fla. plant:

Reliant Energy is purchasing the Indian River Steam Generation Plant (619 MW) from the Orlando Utilities Commission for $205 million.

BEC Energy and Commonwealth Energy System merge:

BEC Energy and Commonwealth Energy System completed their merger under a new company, NSTAR, made up of subsidiaries Boston Edison, Cambridge Electric, Commonwealth Electric and Commonwealth Gas.

FirstEnergy to acquire Volunteer Energy LLC:

FirstEnergy Corp. intends to acquire the retail natural gas business from Volunteer Energy LLC, a subsidiary of Williams.

Aquila Energy launches new services:

Aquila Energy, subsidiary of UtiliCorp United, offers a new portfolio of services called The Exchange Center, providing deferred deliveries, exchanges, park and loan, pack and draft, and title transfer.

AES expands retail energy supply business:

AES Corp. formed a new subsidiary, Power Direct, to compete for electricity and natural gas retail customers (residential and small to mid-sized commercial) in U.S. markets.

FirstEnergy licensed to sell in N.J.:

FirstEnergy Services Corp. received its license from the N.J. Board of Public Utilities to sell electricity in the state to residential, commercial and industrial customers under New Jersey Energy Choice.

Washington rep. to introduce net metering legislation:

Rep. Jay Inslee (D-WA) plans to introduce a bill, entitled the Home Energy Generation Act, to remove regulatory barriers to net metering nationwide. The bill would allow electricity customers who generate electricity from renewable energy sources and fuel cells to be credited for any excess energy fed back to the local utility.

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Volume 77
Issue 10
October 1999