Table of ContentsDepartmentsCustomer SystemsLearning Y2Ks lessonsBy mid-morning on New Year`s Eve, when countries on the other side of the world began making the Y2K transition without apparent trouble, any lingering fears of a Y2K disaster were largely dispelled. Under the piles of confetti and broken champagne bottles lie several important lessons that the industry should take to heart.
KnowledgeBase bundles ProtagonaKnowledgeBase (www.knowledgebasemarketing.com) of Chapel Hill, N.C., is bundling Recognition Systems Inc.`s Protagona system (www.protagona.com) into its customer relationship management (CRM) solutions. Protagona offers "real-time experience management tools," intended to deliver personalized marketing messages across a variety of channels, including the web, call centers and direct marketing.
Montana Powers new CIS beats Y2K, unbundling deadlinesUnbundling utility charges to support deregulation and Y2K demands converged on our legacy customer information system (CIS) almost simultaneously in late 1997. Under the state of Montana`s deregulation rules, our combination utility would be required to provide an unbundled bill to all Montana Power customers, regardless of whether they chose an alternate energy provider or continued to purchase energy from us. On top of that, our legacy system was 10 years old and not Y2K compliant. Without en
Madrid on Lake Michigan: Union Fenosa comes to AmericaWhen utility IT managers think about major enterprise software vendors serving their industry, they usually think of companies from Silicon Valley, perhaps a few from further up the coast, and probably a couple of little European companies like SAP and Alstom ESCA. Before long, they`ll also be thinking of Madrid, Spain-based Union Fenosa ACEX (www.ufacex.com).
Energy MarketingOnline exchanges electrified with e-crazed bidding for powerIn the dash for electronically traded wholesale and retail power, the rule is: "Be quick or become yesterday`s electronic road kill." The digital exchange of electricity through electronic trading systems and exchanges has fast become a sky-high-stakes game of wits, nerve, investment capital, marketing savvy and up-to-the-second technological advances. But mainly, it`s a break-neck e-commerce competition-where whoever drives the most business wins.
Info. TechnologyIT due diligence and M&A integration: how much is enough?Morgan Stanley Dean Witter says that in 1997 the announced global utility industry mergers and acquisition (M&A) volumes were $115 billion, exceeding $90 billion in the United States alone and triple the level of 1989. U.S. utilities are attractive for many reasons. The United States is the largest electricity market in the world. It`s rapidly deregulating. There is a stable legal environment. There are relatively attractive risk adjusted returns. The industry is a platform for convergence (fuel
If you havent dropped your laptop yet-you willRuggedization of laptops was once a niche offering by vendors. But now, vendors who originally produced mainly soft environment computers are producing more durable models. The demand for laptops that are damage resistant is the result of the dramatic increase in the mobile workforce and the subsequent increased costs to repair units damaged in the field.
Hourly planning saves TVA millionsThe Tennessee Valley Authority (TVA), one of the largest utilities in the United States, has implemented new operations scheduling software for hourly planning. Savings have come from optimizing the schedule to minimize operating costs. Computer simulation has, in a number of cases, encouraged the utility to idle as many as 12 units to achieve significant cost savings while ensuring generation reliability.
San Diegos new emergency operations center opensOpened officially November 4, San Diego Gas & Electric`s (SDG&E) new $1.5 million state-of-the-art emergency operations center serves as the command post whenever a significant incident impacts the area`s electric and natural gas systems. The 6,500-square-foot facility, located at SDG&E headquarters in the Kearny Mesa area, features a situation room with 33 computer workstations for team members.
People and CompaniesUnicom appointed Elizabeth Anne (Betsy) Moler as senior vice president for federal government affairs.Unicom appointed Elizabeth Anne (Betsy) Moler as senior vice president for federal government affairs. Currently an attorney in private practice in Washington, D.C., Moler is a former chair of the Federal Energy Regulatory Commission (FERC). She served as FERC chair from 1993-1997 and as the deputy secretary for the Department of Energy from 1997 to 1998.
Andersen Consulting named Etienne H. Deffarges global managing partner for utilities strategy.Andersen Consulting named Etienne H. Deffarges global managing partner for utilities strategy. He joins Andersen Consulting from Booz-Allen & Hamilton, where he was most recently senior VP and group leader for the energy, chemical and pharmaceutical practice. He will be responsible for strategic counseling operations for utilities around the world, focusing on helping clients develop eCommerce strategies and new business models.
Duke Energy appointed Greg P. Bilinski as vice president of transmission for Texas Eastern Transmission Corp.Duke Energy appointed Greg P. Bilinski as vice president of transmission for Texas Eastern Transmission Corp. and Algonquin Gas Transmission Corp. He will report to Theopolis Holeman, senior vice president, transmission and capacity management. Most recently, Bilinski served as general manager, gas systems management. He joined the company in 1975 as an engineer for gas operations in West Chester, Pa.
PP&L Inc. named Dennis Murphy vice president-power production and engineering.PP&L Inc. named Dennis Murphy vice president-power production and engineering. He most recently served as superintendent of PP&L`s Brunner Island generating station. Murphy, who has 27 years of experience in power plant operations, replaced Bob Shovlin, who retired January 1. Shovlin served as the company`s vice president-power production and engineering for seven years.
Entergy Power Group, the wholesale power development unit of Entergy Corp.,Entergy Power Group, the wholesale power development unit of Entergy Corp., named Paul Wielgus senior vice president for business development. He will lead EPG`s power development efforts in and around Entergy`s service territory, including the Southwest Power Pool and ERCOT, as well as development activities in Mexico. He previously served as vice president for North American development and asset management for American Electric Power.
American Electric Powers Andrew Varley, senior vice president for energy pricing and regulatory services retired effective Dec. 1, 1999.American Electric Power`s Andrew Varley, senior vice president for energy pricing and regulatory services retired effective Dec. 1, 1999. Varley joined AEP in 1988 and was elected vice president-rates. In 1996, he was elected senior vice president-energy pricing and regulatory services. Before joining AEP, he served as chairman of the Iowa State Utilities Board for eight years.
OGE Energy Corp.s board of directors named four company officers to new positions.OGE Energy Corp.`s board of directors named four company officers to new positions. Jack T. Coffman, vice president, power supply, was named senior vice president. David Kurtz, vice president of Enogex Inc. was named to the newly created position at OGE Energy of vice president, business development. James R. Hatfield, vice president and treasurer, was named senior vice president, CFO and treasurer. Donald R. Rowlett, controller, corporate accounting, was named vice president and controller.
Commonwealth Edison appointed Ronald E. Talbot, a utility expert from Consolidated Edison,Commonwealth Edison appointed Ronald E. Talbot, a utility expert from Consolidated Edison, as a regional distribution operations vice president in charge of the city of Chicago. The company also promoted Carl L. Segneri to the same position in charge of the suburban and rural territories. Senior vice president and president of the distribution group, Carl J. Croskey, created these positions to strengthen the regional oversight of the delivery system. Both Talbot and Segneri will be responsible f
Reliant Energys Don D. Jordan retired as chairman of the board effective Dec. 31, 1999, after more than 44 years with the company.Reliant Energy`s Don D. Jordan retired as chairman of the board effective Dec. 31, 1999, after more than 44 years with the company. R. Steve Letbetter, who had been serving as president and CEO since June 1999, was named chairman, president and CEO of the company. Under Jordan`s leadership, Reliant Energy grew from a local electric utility serving about 1.5 million customers on the Houston Gulf Coast to an energy services company with nearly 4 million customers and operations throughout the Unit
William R. Holland retired as chairman of the board of directors of FirstEnergy Corp. effective Dec. 31, 1999,William R. Holland retired as chairman of the board of directors of FirstEnergy Corp. effective Dec. 31, 1999, after a 33-year career in the electric utility indu-stry. He stepped down as FirstEnergy CEO in April 1999, and was succeeded in that position by H. Peter Burg, who also serves as president. Under Holland`s leadership, Ohio Edison and the former Centerior Energy merged in 1997 to create FirstEnergy.
TechnologyPQ is not only about technology, solutions pivot on economicsThe robust power quality (PQ) protection equipment market, with total revenues of $1.4 billion in 1998, is the place for suppliers eager to carve out a profitable niche. Frost & Sullivan, an international marketing consulting company, recently conducted research indicating growth is expected to continue throughout the forecast period 1998 to 2004.
Current limiter debuts with record HTS coilsThe Fault Current Limiter (FCL) II device, built under a U.S. Department of Energy (DOE) Superconductivity Partnership Initiative (SPI) program for the design, fabrication and testing of a pre-commercial 15 kV-class superconducting current controller, has completed its first phase of testing in Norwalk, Calif. The innovative FCL device incorporates three world record-size high temperature superconducting (HTS) coils, each measuring more than one meter in diameter and three-quarters of a meter in
Web-based research targets flashoversThere have been widespread reports of flashovers during operation of distribution cable elbows (separable connectors) and insulated bushing caps. These failures have occurred primarily during routine switching when very small load currents, or just cable charging current, are interrupted. The numerous flashovers during insulated cap removal have been particularly perplexing because virtually no current is interrupted.
TVA to produce radioactive gas for weaponsFor the first time in U.S. history, a civilian nuclear plant will be making radioactive tritium for use by the government in manufacturing nuclear weapons. The Tennessee Valley Authority`s (TVA) Watts Bar Nuclear Plant near Spring City, Tenn., could begin making tritium as early as 2003, while continuing to generate electricity. TVA`s Sequoyah plant near Chattanooga, Tenn., will serve as a backup. Under the contract, TVA will be reimbursed an estimated $25 million for its preparation efforts in
Companies join forces for industrial power generationFlowtronex International Inc., Tyler, Texas, designer and manufacturer of modular systems, and Pratt & Whitney Canada agreed to package and market modular pumping, gas compression and power generation systems. The turnkey systems will incorporate Pratt & Whitney Canada`s aeroderivative ST18 gas turbine for applications up to 2 MW and use the company`s ST40 gas turbine for systems up to 4 MW. Customers for these systems are manufacturing facilities, oil & gas, hospitals, resorts and food processi
GE introduces newest F technology gas turbineGE Power Systems recently introduced the MS7001FB, the newest member of its F technology family of gas turbines. The STAG 107FB will have a combined-cycle thermal efficiency of 57.3 percent, an improvement of more than two percent compared to the current STAG 107FA offering. A 107FB combined-cycle system will produce 280.3 MW of power, an increase of nearly seven percent over the 107FA. Sithe Energies plans to purchase the first nine 7FBs for three merchant power plants in New York and Pennsylva
Pirelli boosts investment in HTS power cablesPirelli Cables and Systems will provide up to $13.8 million in additional funding to American Superconductor Corp. for the development of high temperature superconducting (HTS) wires for use in power cables. The companies also agreed to exploit HTS wire for use in fault current limiters, devices employed to limit power surges in electrical networks. (Pirelli formed a strategic alliance with American Superconductor in 1990.)
ComEd adds high-voltage underground cableCommonwealth Edison Co. awarded W.A. Chester LLC, a unit of Potomac Electric Power Co., a fourth contract to install an additional 25 miles of high-voltage underground electric cable for a Chicago area project. When work is completed on the latest phase of this multi-million dollar project, W.A. Chester will have installed more than 100 miles of new, single conductor 138 kV solid dielectric cable.
FeaturesJust in Time for AOLThe Just in Time Solutions BillCast platform is being implemented on an electronic bill presentment and payment (EBPP) service being developed by America Online Inc. (AOL) and Intuit Inc.
Derivion gets IntuitAtlanta-based EBPP software company Derivion (www.derivion.com) teamed with Intuit to provide EBPP services to Intuit`s Quicken and Quicken.com. Derivion provides turnkey EBPP and customer care services using its inetBiller system, which the company says brings rapid EBPP deployment-30 to 60 days-for small to mid-tier billers.
BPA selects TenfoldTenFold Corp. (www.10fold.com) of Salt Lake City was selected by the Bonneville Power Administration (BPA) to build and implement TenFold`s SettlementNow! EBPP system for BPA`s wholesale electric power and transmission service customers. "Our extensive analysis demonstrated a rapid return on investment for this project with reduced operating costs," said Lou Tauber, BPA transmission project manager.
Industry ReportMexico-CalPX LinkThe California Power Exchange`s (CalPX) electricity marketplace has expanded into Mexico with the addition of Comision Federal de Electricidad (CFE) as a participant in CalPX`s spot markets, and the first direct international trade link for CalPX. The CFE`s entry into CalPX`s Day-Ahead Market is predicted to increase trading volume and opportunities for generators to supply energy to Mexico. With CFE`s participation, Mexico becomes the second international participant, along with the Canadian Br
Maines main supplierWPS Energy Services Inc., a subsidiary of WPS Resources Corp. (NYSE: WPS), was selected as a "standard offer" supplier in the Maine Public Service Co. service territory. Starting March 1, 2000, consumers in Maine will be able to choose from a number of competing power producers. Consumers who elect not to choose a power company will default to a "standard offer" service. The Maine Public Utilities Commission selected WPS Energy Services to serve all home and industrial accounts, taking service u
Market thunder from "Down Under"An Australian court ruling recently upheld some $625 million in electricity contracts between a retailer and generator, averting a blow to the nation`s power market while re-igniting debate on the risks of state utility ownership. The courts ruled that a New South Wales state-owned generator, Pacific Power, could not get out of 11 hedge contracts it had tried to invalidate with retailer Powercor. Financial market experts said the case went to the heart of standard Australian dealing practices th
Powerful settlementBaltimore Gas and Electric Company (BGE) and its parent holding company, Constellation Energy Group (NYSE: CEG), gained the Maryland Public Service Commission`s approval of the utility`s electric deregulation settlement. The order guarantees a six-year, average 6.5 percent base rate reduction for residential customers, and customer choice on July 1, 2000. As part of the settlement, BGE will continue to deliver electricity-regardless from whom consumers purchase it-to all 1.1 million customers th
And the winner is ...In November, NRG Energy, a wholly owned subsidiary of Northern States Power Co. (NYSE: NSP), announced that its power marketing unit, NRG Power Marketing Inc., has been awarded a contract to supply approximately 40 percent of The Connecticut Light and Power Co.`s (CL&P) Standard Offer load. NRG won the four-year contract valued at $1.7 billion in a competitive bidding process. NRG owns (or has binding purchase agreements) to acquire approximately 2,400 MW of generating capacity in the New Englan
Say "hola" to new marketsDuke Energy International (DEI), a subsidiary of Duke Energy (NYSE: DUK), announced that its Argentine affiliates have received all necessary government approvals to commence the physical trading and marketing of electricity and natural gas in Argentina. The Argentine Secretary of Energy granted Duke Energy Power Marketing and Trading Argentina S.R.L., a license to trade and market power. Duke Energy opened its trading and marketing business in Buenos Aires in March of 1999.
Neither snow, nor rain, nor sleet ...Koch Energy Trading announced the placement of a $50 million weather bond in November 1999. The three-year transaction is based on the annual performance of a fixed portfolio of 28 weather derivative contracts, each of which is individually based on the temperature experience at 19 locations in the United States. Koch Energy Trading, a subsidiary of Wichita, Kansas-based Koch Industries Inc, completed this first-ever weather securitization transaction through Kelvin Ltd. and Goldman, Sachs & Co.
Keeping secrets: utilities deem spending plans hush-hush, boost e-commerce budgetsElectric utilities are lying low and remaining mum about their capital investment plans. Not eager to "give away the store," detailed information about future generation, transmission and distribution spending is no longer trumpeted. A consequence of competitiveness and the growing diversity of entities that own and operate facilities is that government agencies, industry groups and reliability organizations face growing difficulties in obtaining consistent and complete data on existing and plan
Utility of The MonthOutnumbered by dataIn your October issue of Electric Light & Power you authored an article on the Best 100 utility companies using Navigant`s FERC FORM 1 database. We are a holding company with 3 operating companies and noticed that you used operating companies in your analysis. I realize that this is how FERC requires the data to be reported, but other industry studies compile the operating companies into their appropriate holding company for analysis. Could you please inform us why EL&P decided to report the dat
Free electricity from P.T. BarnumMy name is Michael Wright. My colleague, Mark Coeburn, and I enjoy reading your articles in Electric Light & Power on a monthly basis.
Dont get hacked offJust read your article on Millennium monsters. Great job. I hadn`t thought about hackers before. I`ll be in the office on New Year`s Eve to answer press calls because of Y2K. It may turn out to be an exciting evening.
Interim management addresses transition issuesIn our society "mature" connotes aging or growing old. Some consultants tend to view the energy industry as mature and lacking dynamic market potential and, therefore, unable to sustain the same growth as younger industries. Interestingly enough, mature was exactly the term that many economists applied to the U.S. marketplace in the mid-1980s and boy, were they wrong.
Industry NewsHomemade firecrackers trump Y2K bug in millennium rolloverForget about the Y2K bug-"homemade firecrackers in a plastic bucket that went off" at the base of a transmission tower briefly blinked the lights just before midnight on New Year`s Eve in 4,000 homes served by Commonwealth Edison (ComEd). Ironically, malicious, Neanderthal-like high jinks replaced high-tech mayhem in causing year 2000 rollover power disruption.
Internet sparks explosion in power demandWhen Business Week magazine asked General Electric CEO Jack Welch recently to rank the Internet on his company`s agenda, he said, "In terms of priority, it`s number one, two, three and four."
AULD LANG SYNE TO Y2K BUGThe Public Service Company of Oklahoma (PSO), Tulsa, Okla., ushered in the new year without Y2K-related incidents, serving as an example of the familiar adage, "no news is good news"-which continued as a common theme as midnight rolled across U.S. electric utilities. "The electric industry can be very proud of the way it did its job during the long New Year`s holiday period," said Michehl R. Gent, president of NERC. "The lights stayed on and no customers were without service due to the year 2000
Leading the charge: skills desired of CEOs change with companies strategiesAre electric utility CEOs up to the challenges posed by today`s era of radical change? Do they have the background and skills needed to lead the multi-faceted transition from monopoly markets to competition? Or must the profile of a successful electric utility CEO change significantly as the industry evolves?
Tracking systems validate electricity claimsAs robust competition begins to emerge in restructured electricity markets, the dissemination of electricity information to consumers and regulators will play an increasingly vital role. The need for reliable information, critical to building consumer confidence in nascent green power markets, underscores the importance of developing legitimate tracking systems to validate claims made by power marketers about their electricity products and supply portfolios.
Sithe adds 21 Mid-Atlantic plants: Sithe Energies Inc. purchased 21 non-nuclear power generating plants (total 4,276 MW) from GPU Inc.Sithe adds 21 Mid-Atlantic plants: Sithe Energies Inc. purchased 21 non-nuclear power generating plants (total 4,276 MW) from GPU Inc. for $1.67 billion. The transaction more than doubles the company`s North American generating capacity to a total of 8,074 MW. The newly acquired plants include 16 in Pennsylvania (2,743 MW), four in New Jersey (1,515 MW) and one 18 MW facility in Maryland. The transaction includes the purchase of GPU`s interests in two 1,711 MW stations in Pennsylvania, which Sit
Dynegy enters Fla. merchant market: Dynegy Inc. is developing a 500 MW, gas-fired peaking plant in Osceola County, near Orlando, Fla.Dynegy enters Fla. merchant market: Dynegy Inc. is developing a 500 MW, gas-fired peaking plant in Osceola County, near Orlando, Fla. Power from the Palmetto project is expected to be sold in Florida`s wholesale electric market when startup begins in the summer of 2002. Three gas turbines, operating in simple-cycle mode, are expected to burn gas delivered by the Florida Gas Transmission pipeline, and supply power through a 230 kV interconnection with Florida Power and FP&L transmission networks.
Calpine acquires Cogeneration Corp.: Calpine Corp. acquired 80 percent of the common stock of Cogeneration Corporation of America (CGCA) for $146 million,Calpine acquires Cogeneration Corp.: Calpine Corp. acquired 80 percent of the common stock of Cogeneration Corporation of America (CGCA) for $146 million, increasing Calpine`s gas-fired power production by 20 percent to 2,476 MW of capacity. NRG Energy Inc., a subsidiary of Northern States Power, will retain the remaining 20 percent interest in CGCA.
Duke, Phillips plan new company: Duke Energy and Phillips Petroleum Co. plan to merge their natural gas units to form one of the nations largest midstreamDuke, Phillips plan new company: Duke Energy and Phillips Petroleum Co. plan to merge their natural gas units to form one of the nation`s largest midstream natural gas liquids business, Duke Energy Field Services. The combined business is expected to have a value of between $5 billion and $6 billion. It will operate 67 plants and 57,000 miles of pipeline and will produce 400,000 barrels per day of natural gas liquids. At closing, Duke Energy will own about 70 percent of the new company, and Phil
Edison International buys ComEd generation:Edison Internationalís recently formed independent power generating unit, Midwest Generation, assumed ownership of Commonwealth Edison`s fossil-fuel generating assets (total 9,510 MW) for $4.8 billion. The sale included six coal-fired generating plants (total 5,645 MW), the Collins Station (gas- and oil-fired, total 2,698 MW) and nine peaking unit sites (total 1,429 MW).
NRG Energy acquires Conn. generation:NRG Energy Inc., a wholly owned, nonregulated subsidiary of Northern States Power Co., acquired electric steam generating stations and remote gas turbines totaling 2,235 MW of generating capacity from Connecticut Light & Power Co. The principal assets are the Middletown, Montville, Devon and Norwalk Harbor gas- and oil-fired steam generating stations. NRG now owns more than 7,000 MW of generating capacity in the northeast United States.
Reliant to sell Latin American investments:Reliant Energy retained an investment banking firm to help it sell its Latin American investments as part of a change in strategy. Reliant has decided to focus on a strategy toward developing asset-backed trading and marketing in Europe just as it has in the United States.
Dynegy selling plant shares to El Paso: El Paso Energy Corp.s subsidiary, El Paso Merchant Energy Co.,Dynegy selling plant shares to El Paso: El Paso Energy Corp.`s subsidiary, El Paso Merchant Energy Co., will buy Dynegy`s California cogeneration plants for $255 million. The Dynegy assets provide El Paso with part ownership in 11 gas-fired power generation plants and a combined capacity of 370 MW. The deal also includes an operating company with turbine maintenance.
FirstEnergy lights up Atlantic City casinos:FirstEnergy Services Corp., a subsidiary of FirstEnergy Corp. signed a contract with The Casino Association of New Jersey to supply more than 450 million kWh of electricity after working through a third-party-Energy Purchasing Experts-that represented the combined loads of member casinos.
Midwest utilities propose transmission company:Commonwealth Edison, MidAmerican Energy Co., IES Utilities and Interstate Power Companies filed a request with FERC for a Declaratory Order approving a new model of a large-scale, for-profit transmission company, operating under the oversight of the Midwest ISO.
FERC blocks Northeast pipeline project:FERC decided that Williams, Coastal and National Fuel Gas failed to show there was enough demand for a $1.2 billion pipeline (Independence project) designed to bring natural gas to the Northeast. FERC voted to ask the developers for more information, including potential impacts on the environment.
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January 2000
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