Table of ContentsDepartmentsCustomer SystemsIts reliability, stupid!Anyone who saw the movie Jurassic Park (or read the Michael Crichton novel) knows technology can`t overcome Mother Nature.
E-billingInternational Billing Services (IBS) and New Century Energies (NCE) have entered into a five-year statement processing and electronic billing services contract for 1.3 million of NCE`s electric and natural gas customers. Under the terms of the contract, IBS and NCE are working together to redesign NCE`s current statements to better serve customers` needs. Additionally, IBS will print and mail NCE`s paper statements and provide electronic billing services for those customers who prefer the option
Web-based managementTeCom Inc. has provided Kmart Corp. with an energy management solution utilizing the InterLane System, an Internet-ready energy information system. "We needed to streamline the process of collecting and analyzing our energy consumption data for our stores across the nation," said John Sulek, Kmart Corp. national energy manager.
Top web siteAvista Corp. won the web site category at the Utility Communicators International, 1999 Better Communications Competition. Some of the fastest growing parts of the utility`s business involve technology-tele- communications, Internet services, fiber optic networks and distributed generation.
Billing allianceScience Applications International Corp. (SAIC) EnerLink division signed an agreement with SCT Utility Systems that permits SCT to market and use EnerLink`s complex billing engine, which extends the capabilities of SCT`s Banner customer information system (CIS). BillGen will provide the Banner CIS system with a scalable, front-end solution for complex bill calculations. It performs the complex interval data gathering, data handling and calculation functions required by utilities and other retail
CIS licensePacific Gas and Electric (PG&E) licensed SPL`s CIS PLUS customer information system (CIS) in a multi-million dollar contract that will provide the utility with a new billing engine this year. In addition, all PG&E`s legacy customer information applications will be migrated to the CIS over the next few years.
EDI engineExcelergy announced a new addition to its suite of customer-centric solutions, the Elec Interchange Transmission System. Energy retailers, marketers and local distribution companies can run traditional customer care and billing solutions on this new operating support system, which uses an efficient EDI engine compliant with national standards, to cost effectively manage customer service levels and improve profitability.
AMR contractItron and Southern California Edison (SCE) finalized and signed a contract for automatic meter reading (AMR) services. Under the terms of the contract, a mobile AMR system owned by Itron will be used to provide monthly consumption reads and direct access reads. Services are priced on a per-meter basis. The term of the contract is for 11 years with options to renew thereafter. Installation of the system is expected to begin in the third quarter of this year and will take approximately one year to
CRM alliancesDeloitte Consulting and Pricewaterhouse-Coopers both formed separate alliances with SPL WorldGroup to implement customer relationship management (CRM) solutions in energy and utility markets. The consulting companies hope their alliance will offer a reliable and expeditious customer care solution.
E-softwareUtility.com purchased Silknet eService, Silknet`s Web-based customer service software solution to manage relationships with customers and partners and to provide Internet-based customer self-service. Utility.com is an online company that provides residents and businesses with a way to buy, track and manage energy via the Internet.
Customer databaseKansas City Power and Light (KCPL) selected infoUSA to build and maintain a customer marketing database. infoUSA will become KCPL`s source for demographic data, analytical services, modeling and data warehousing. infoUSA will standardize KCPL`s multiple internal databases and build one relational database with the utility`s one relational database for marketing and prospecting. infoUSA will also enhance the database with its business and consumer demographic information, and provide analytical a
Competition forces utilities to implement new customer solutionsThere is no getting around it. Energy companies who want loyal customers are going to spend serious money on customer-facing information technology.
Utility call centers lag behind other industriesAlthough call centers have become a big business throughout the United States-serving as the most frequent point of contact with customers-a survey conducted by Ernst & Young LLP (E&Y) indicates electric and gas utility call centers are among the poorest performers in delivering both efficient and effective service. According to the E&Y survey, which polled 326 call center managers from various companies across the nation, call centers in the healthcare and banking markets received the highest m
Energy MarketingFree market pushes industry pendulum back to value-addRenewing its focus on value-added or bundled services, the utility industry serves as a prime example that "history," as Mark Twain once quipped, "doesn`t repeat itself, but sometimes it rhymes."
Coal markets expand as participants eye new toolsSince the first over-the-counter (OTC) coal trades a little more than a year and a half ago, coal trading markets have seen an influx of new participants and increased activity. Traditional market makers, such as power marketers already experienced in electricity and natural gas trading, have been joined by a number of utilities, industrial end users, and producers.
New ProductsCOMMUNICATION CHIPThe single chip modem allows long distance data communications over the power line. Intended for use by utility companies wishing to provide advanced billing and load management services (remote meter reading and load control), the product meets the EIC-61334 standard. The same chip can be used at either end of the data link by selecting client or server mode of operation. It sends data in short bursts around the zero crossing of the power voltage cycle to avoid most of the noise generated by mo
ELECTRONIC DEVICESTRAC-Cabinet, part of the TRACess family of electronic access devices, permits authorized entry into cabinets, drawers or other locking enclosures when used with a TRACkey. TRAC-Cabinet is simple to install on virtually any cabinet with no requirement for external wiring to power or communication networks. Supra`s TRACcess intelligent entryway devices control keys, provide electronic access to multiple remote sites and track access activity, completely eliminating the need for conventional mecha
BATTERY PRODUCTSCatalog presents utility/telecommunications stationary products such as stationary batteries (25 year flooded types and valve regulated lead acid ), specialty batteries, chargers/rectifiers, battery testers, specialty testers, battery monitoring, battery racks/cabinets, and battery maintenance supplies. Web site: www.sbsbattery.com
CABLE STRIPPERAluminum underground cable stripper for use with a cordless drill has four different barrels, allowing for varied cable sizes. Its 14 oz., 4-in-1 design enables fast, efficient performance in J-boxes, transformers and service panels. The cutting blade is made of high-quality tool steel and is heat-treated for durability.
POWER BREAKERThe 800 to 3,200 ampere Magnum DS power breakers provide the industry`s highest ANSI ratings available without current limiters in a physically smaller size. A new through-the-door design means all controls, indicators, and the trip unit are visible and can be safely accessed without opening the compartment door. A unique 4-inch wireway is located on the side of the structure for quick and safe wiring.
HEAT EXCHANGERSMiniature heat exchangers are featured at www.exergyinc.com, including shell and tube miniature heat exchangers, tube-in-tube heat exchangers, drawings, dimensions and photographs, custom design capabilities, and online application review.
People and CompaniesGeorgia Power appointed Thomas A. Fanning as executive vice president, treasurer and chief financial officer.Georgia Power appointed Thomas A. Fanning as executive vice president, treasurer and chief financial officer. Fanning was most recently senior vice president of strategy at Southern Company, a position he has held since 1998.
Avista Corp. named Christy Burmeister-Smith vice president and controller.Avista Corp. named Christy Burmeister-Smith vice president and controller. Burmeister-Smith, who joined Avista in 1980, was previously controller for the company`s energy delivery business unit.
Benjamin F. Montoya, Public Service Co. of New Mexicos president, CEO and chairman, was elected chairman of the Edison Electric Institute.Benjamin F. Montoya, Public Service Co. of New Mexico`s president, CEO and chairman, was elected chairman of the Edison Electric Institute. John W. Rowe, Unicom Corp.`s chairman, president and CEO, was elected first vice chairman. Erie Nye, TXU`s (formerly Texas Utilities) chairman, and chief executive, was elected second vice chairman.
Ameren Corp. named Gregory L. Nelson, vice president and tax counsel. He joined Union Electric Co.,Ameren Corp. named Gregory L. Nelson, vice president and tax counsel. He joined Union Electric Co., now known as AmerenUE, in 1995 as manager of the tax department. The company also named Raymond M. Wiesehan manager of Ameren Meter Service in the corporation`s marketing division. Wiesehan joined the company`s motor transportation department in 1972.
Roy Thilly, Wisconsin Public Power Inc. CEO, was named to a one-year term as president of the American Public Power Association (APPA).Roy Thilly, Wisconsin Public Power Inc. CEO, was named to a one-year term as president of the American Public Power Association (APPA). Thilly served as APPA`s president-elect during the past year and as APPA vice president in 1997-1998.
CILCORP shareholders re-elected incumbents John R. Brazil, Jerry D. Caulder and Murray M. Yeomans to new three-year terms on the board of directors.CILCORP shareholders re-elected incumbents John R. Brazil, Jerry D. Caulder and Murray M. Yeomans to new three-year terms on the board of directors. Brazil serves as a member of the board`s audit and director affairs committees. Caulder serves on the audit and compensation committees. Yeomans serves on the executive, director affairs and strategic development committees.
New Energy Ventures named Danford M. Baker president of NEV California.New Energy Ventures named Danford M. Baker president of NEV California. Baker joined New Energy Ventures in November 1996, as regional marketing director of the Western United States.
Dynegy Inc. named David Keane senior director of government affairs.Dynegy Inc. named David Keane senior director of government affairs. He replaces Terry Callender, who retired. Keane joined Natural Gas Clearinghouse, Dynegy`s predecessor, in 1990 as director of contract administration.
Reliant Energy appointed Waters Davis president of Reliant Energy Retail Group.Reliant Energy appointed Waters Davis president of Reliant Energy Retail Group. Reliant Energy also named Eddie Meche vice president and chief risk control officer, and Mary Ricciardello senior vice president and controller.
Edison Mission Energy named Georgia Ricci Nelson president of Midwest Generation,Edison Mission Energy named Georgia Ricci Nelson president of Midwest Generation, a newly formed subsidiary which will operate the company`s recently acquired Homer City Generating Station and the fossil fuel generating assets the company is acquiring from Commonwealth Edison. Ronald L. Litzinger, newly named senior vice president of worldwide operations, takes over Nelson`s previous post.
Steve Weyel was named president of InterGen North America. Weyel will oversee commercial power contracts and all outside product sales for the company.Steve Weyel was named president of InterGen North America. Weyel will oversee commercial power contracts and all outside product sales for the company. He most recently served as senior vice president for Dynegy Marketing and Trade.
TechnologySuperconductivity connects to grid, shows commercial feasibilityA superconductor application graduated in May from localized, industrial use and will enter a transmission network in January-marking its first connection to the grid.
Forecasting solar storms protects generating plants and transmission gridsSolar Cycle 23, the next 11-year cycle of solar activity and geomagnetic disturbances, has begun and its peak period is expected in the first quarter of 2000. This time, however, power companies in danger of impact from the solar storms` geomagnetically induced currents can receive enough advance warning to protect their systems.
Technology At WorkWestinghouse provides first Western fuel to UkraineWestinghouse Electric Co. will provide the first Western-designed nuclear reload fuel to a Russian-designed VVER 1000 commercial nuclear power plant in Ukraine. Under the terms of a U.S. government-funded program, Westinghouse negotiated with Pacific Northwest National Laboratory to provide nuclear fuel technology transfer, lead test assemblies and a fuel reload to the South Ukraine Nuclear Power Plant Unit 3. The test assemblies and the initial reload for the plant will be manufactured at the W
ECO partners with H PowerEnergy Co-Opportunity (ECO) will invest equity in H Power in exchange for the right to have its electric cooperative members acquire exclusive territories in which to sell, distribute, lease, finance and service H Power stationary fuel cells. ECO also plans to partner with the National Rural Utilities Cooperative Finance Corp. to offer financing opportunities for ECO members.
Atlantic Projects Co. adds U.S. SubsidiaryAtlantic Projects Co. (APC) of Dublin, Ireland, provider of specialized services for gas turbine and combined-cycle power plant erection and equipment installation, has established a U.S. subsidiary in Schenectady, N.Y. APC was established in Ireland in 1974 as a wholly owned subsidiary of GE`s Installation and Service Engineering Division. In 1987, APC management bought the company from GE and later formed APC Ltd. to serve the privatized power generation market in the U.K.
GE launches energy rentals businessGE Power Systems (GEPS) launched GE Energy Rentals. Initially, the products will include generators ranging from 5 kW to 1.5 MW, air conditioners as large as 50 tons, and water-cooled chillers up to 1,000 tons. Solutions also include transformers, power distribution equipment and other support systems.
Metallic Power Partners with ABBMetallic Power, developer of rapidly refuel-able zinc/air fuel cells, partnered with ABB to build a 4 kW, 48 V prototype backup power system primarily for telecommunications but with applications for information systems and electrical equipment serving up to 50 kW. Metallic Power will develop the zinc/air fuel cell for the energy source while ABB will develop the power electronics for a backup power prototype.
Siemens forms new business to focus on T&DSiemens Power Transmission & Distribution formed a new business unit, called T&D Service, to focus on the operation, maintenance and enhancement of electrical transmission and distribution systems.
EPRI acquires Sargent & Lundys interest in SEPRILEPRI acquired Sargent & Lundy`s interest in SEPRIL LLC, the developer of the SOAPP software product line. SOAPP products are tools for selecting, designing, and budgeting power generation technology. SEPRIL was founded in 1994 as SEPRIL Services LLC, with ownership split equally between EPRI and Sargent & Lundy. Concurrently with the acquisition, SEPRIL`s name is being changed to SOAPP LLC.
Blast suppression blanket offers additional safetyFlorida Power & Light Co. (FPL) has added another safety product to their existing rigid safety standards. It has instituted a requirement for an electrical blast suppression blanket for use in medium-voltage underground chambers. One of their selections was the EXPLO-SAFE blast suppression blanket that is now in active use at FPL and several other utilities in the United States and Canada.
FeaturesIndustry ReportISO New England draws heat for price cutsHoping to prevent price gouging, ISO New England retroactively cut prices for some electricity sold to it during a two-day heat wave in June-a move that steamed many traders.
APX launches Ohio hubThe Automated Power Exchange (APX) fired up its new Ohio trading hub in July. Based on delivery within FirstEnergy`s transmission system, which covers a wide path along Lake Erie, the new hub represents yet another move outside its California base for the electronic exchange.
Going wireless: putting the pieces together for true field service mobilityIn the world of deregulation, improving employee productivity is a top priority for electric utilities. Consequently, many are employing IT to empower frontline service people to effectively support the company`s customers.
Top 91 IOUs: The incredible shrinking universeWhen EL&P`s Top 100 IOUs financial report shrank to include only 99 companies last year, the industry passed a critical milestone. As the report`s author, Robert Smock, wrote, "Financial analyst Ed Tirello`s prediction that only 50 IOUs would survive seemed outrageous when he made it about 10 years ago, but now it`s beginning to look pretty good."
Utility of The MonthWHAT EMPLOYEES WANTIn their own self-interest as well as to establish good human relations at work, it`s essential that managers recognize the broad needs of their people.
Industry NewsMichigan PSC lacks clout to order retail choiceThe Michigan Supreme Court decided that the state`s Public Service Commission (MPSC) does not have the authority to order a utility to transmit a third-party provider`s electricity through its system to a customer. Therefore, it lacks the statutory authority to implement an experimental retail wheeling program.
Dynegy-Illinova deal signals re-integrationThe continuing flurry of merger and acquisition activity has brought a variety of new participants into the traditional electric utility business. Much attention has been given to the pending acquisitions by foreign utility companies. Just as interesting, but less explored, is the movement of independent power producers (IPP) and integrated energy marketers downstream into the still regulated portions of the electric industry.
EPA rallies following bizarre decisionAttempting to regain momentum after a federal court decision, the Environmental Protection Agency (EPA) now plans to move forward with NOx limits by separating its one-hour ozone standard from its eight-hour ozone standard.
Double taxation, pure and simpleThe inequity of interest allocation rules in the U.S. tax code is a very serious problem that unfairly constrains the international growth aspirations of American companies.
Columbia shareholders desire negotiations with NiSourceColumbia Energy Group`s hair-trigger refusal of NiSource Inc.`s unsolicited takeover proposal has displeased some of its largest shareholders. They particularly dislike the tone of "we are not for sale." The statement resounds of finality and causes shareholders to question the board`s commitment to its fiduciary duties.
FPL Group expands into NE markets:FPL Group`s business energy subsidiary, FPL Energy Services, began selling gas and electricity to business customers in Pennsylvania and New York. Operating in Florida since 1986, the company expects to enter New Jersey`s market later this summer.
Global Companies & AllEnergy Marketing form alliance:Global Companies LLC and AllEnergy Marketing Co. LLC formed a strategic sales alliance to offer energy products and services, including oil, natural gas and electricity to industrial and commercial customers in New England. Global Companies is affiliated with YPF of Argentina, which recently became part of Repsol, Madrid, Spain. AllEnergy is a subsidiary of New England Electric Systems.
Aquila moves into Europe:Aquila Energy, subsidiary of UtiliCorp United, is establishing an office in Madrid, Spain, in the first phase of its plans to expand its energy wholesaling and risk management operations to the European continent.
Northeast Utilities & Yankee Energy System merge:Northeast Utilities and Yankee Energy System Inc. agreed to a merger in which YES will become a subsidiary of NU. The transaction is valued at $679 million, including assumption of outstanding YES debt of about $201 million, and is expected to close in the first quarter of 2000.
Energy East Corp. acquires CMP Group:Energy East Corp., parent company of New York State Electric & Gas Corp., plans to acquire CMP Group Inc. of Maine in a cash deal valued at $957 million. Regulatory approvals are expected within a year.
Conectiv proposes sale of generation assets:Conectiv released the Offering Memorandum for the proposed sale of more than 2,000 MW of fossil-fired and nuclear assets located in Delaware, Maryland, New Jersey and Pennsylvania. Bidders must submit indicative bids in mid-August.
Wisconsin Energy, WICOR to merge:Wisconsin Energy Corp. and Wicor Inc. agreed to merge in a transaction with an equity value of about $1.3 billion plus the assumption of about $230 million of WICOR debt. The combined company, Wisconsin Energy Corp., will have a market capitalization of about $7.3 billion. The transaction is expected to be completed by spring 2000.
CILCORP sells environmental subsidiary:CILCORP sold its environmental and engineering services subsidiary, QST Environmental Inc. to MACTEC Inc., Golden, Colo., for $18 million. QST Environmental will operate as Environmental Science & Engineering Inc.
Sempra Energy & KN Energy terminate merger agreement:Sempra Energy and KN Energy Inc. jointly agreed in late June to terminate their merger agreement, which was announced Feb. 22, 1999.
O&R divests generation to Southern Energy New York:Orange and Rockland Utilities Inc. transferred ownership of all its electric generating facilities (1,776 MW), including the Bowline Point Generating Station owned jointly with Consolidated Edison of New York Inc., to Southern Energy New York.
Cogentrix to build in Miss.:Cogentrix Energy, an independent electric power plant developer and operator, plans to build a $300 million, 800 MW electric generating plant in Southaven, Miss. Construction is slated to begin second quarter 2000 with operation planned by summer 2002.
Detroit Edison starts Conners Creek plant:Detroit Edison began producing electricity at its Conners Creek Power Plant following conversion of the plant from coal fuel to natural gas. The plant will be able to add up to 200 MW to Detroit Edison`s system.
AEP plans to restart Cook nuclear plant:American Electric Power Co.`s board of directors approved a comprehensive plan to restart the idle Cook nuclear plant, Bridgman, Mich. Unit 2 is scheduled to return to service in April 2000 and Unit 1 is to return to service in September 2000. Plant officials shut down both units in September 1997 because of questions raised during a Nuclear Regulatory Commission design inspection. Expenditures for the restart are estimated at $574 million, of which $192 million has already been spent.
FERC approves mergers: FERC recently approved the following:AES & CILCORP, $885 million; New England Electric System & National Grid Group plc, $3.2 billion; and ScottishPower & PacifiCorp, $7.9 billion.
MAPP members to cast votes on RTO:Members of the Mid-Continent Area Power Pool (MAPP) will vote in September on what could be the first fully operational Regional Transmission Organization (RTO) in the Midwest. If approved, the RTO would be operational by May 1, 2000.
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This IssueNo Image Available Volume 77
Issue 8
August 1999
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