Regulatory Review 
Clinton Calls for Expedited Investigation
UTILITY BUSINESS STAFF
  
09/30/2000 
Utility Business 
Copyright 2000 by Intertec Publishing Corporation, a PRIMEDIA Company. All 
rights reserved. 
President Clinton and Energy Secretary Bill Richardson have called on the 
Federal Energy Regulatory Commission to speed up its investigation of 
electricity rates. 
This summer, the commission launched an investigation to determine whether 
power markets are working efficiently and whether there is true competition 
among suppliers - which is key to lowering electricity prices in a 
deregulated market. 
Some industry leaders complain about loopholes in the 1996 ruling which 
requires utilities to give everyone open access to their transmission 
systems. They say that rules governing the grid allow manipulation by 
utilities that own their own lines, and that violators are rarely penalized. 
Industry leaders also complain about the accuracy of the available 
transmission capacity numbers, and the fact that some transmission providers 
also serve as security coordinators. They are responsible for the reliability 
of the grid, but can also bump bulk power shipments off the grid to prevent 
overloading fees. 
Efforts to bring fair play could be tricky, according to Vibeke Laroi of 
Reuters news service. That's because despite the growing interstate power 
trade, states still have jurisdiction over retail transmission while the 
Federal Energy Regulatory Commission has jurisdiction over wholesale 
transmission. 
"It is also unclear whether FERC can do more under its current mandate, which 
is why some say Congress needs to pass legislation to remove any 
jurisdictional uncertainties," Laroi says. "FERC hopes to fix problems by 
separating transmission from merchant interests through independent regional 
grid operators." 
If the independent operators organize as a pure transmission company that 
operate and own transmission facilities, it could solve the problem. 
One Merger Approved, Another Delayed 
Merger mania continues-this time in the electric utility industry. Regulators 
have approved the merger of two utility companies, but delayed action on 
another. 
The Securities and Exchange Commission has given the green light for Northern 
States Power Co. to merge with New Century Energies. 
The merger, expected to result in more than $1.1 billion in savings over 10 
years, will mean about 800 employees will lose their jobs and about 700 other 
employees will experience changes in their jobs. 
The companies will be known under the new name - Xcel Energy Inc. - and cover 
parts of Colorado, Texas, Wisconsin, Minnesota, Michigan, Kansas, Arizona, 
Oklahoma, North Dakota, South Dakota, New Mexico and Wyoming. 
Meanwhile, utility regulators in Connecticut have delayed their decision on 
Consolidated Edison's proposed purchase of Northeast Utilities. 
Last October, Con Edison agreed to buy New England's biggest electric utility 
for $3.3 billion in cash and stock. Connecticut Attorney General Richard 
Blumenthal opposes the acquisition because he doesn't think it would benefit 
ratepayers or Northeast employees. The company is awaiting approval in 
Connecticut, New York and New Hampshire. Vermont and Maine have approved the 
deal, as has the Federal Energy Regulatory Commission.