FERC Revises Business Practices Standards for Pipelines and Proposes New Standards for Electric Utilities

On May 9, 2005, FERC issued complementary orders adopting revised business practices for natural gas pipelines and proposing similar standards for electric utilities. The orders largely adopt standards proposed by the North American Energy Standards Board (NAESB). The Final Rule for gas pipelines adopts several standards developed by the Whole Gas Quadrant (WGQ) of NAESB, including WGQ's recommended practices for creditworthiness and gas quality reporting. The creditworthiness standards provide procedural rules by which pipelines should deal with their customers with respect to credit issues...

Court Rejects Industrial Consumers Challenge to New York ISO's Design for Pricing Capacity Reserves

Over the spirited and multifaceted objections of industrial power consumers "• represented by the Electricity Consumers Resource Council ("ELCON") "• a US appeals court upheld FERC orders allowing the New York ISO ("NY ISO") to replace a flat-rate price for installed capacity with a price set equal to a downward-sloping demand curve. The sum of ELCON's arguments boiled down to a complaint that the new prices were simply too high and would unduly burden New York consumers. But the court agreed with FERC that the downward-sloping demand curve price would induce needed investment in generating...

Illinois Commerce Commission Conference on Sustainable Energy

The Electric Policy Committee of the Illinois Commerce Commission met May 11 to hear electric utility proposals for implementing a sustainable energy plan in the Land of Lincoln. The proposals were developed in response to Governor Rod Blagojevich's "Sustainable Energy Plan," a proposal submitted last February to the Commission. The Governor asked the Commission to find a way to implement the Plan, which includes a set of goals and recommendations. Commissioner Robert Lieberman leads the initiative to develop the plan, which is expected to be issued in final form in June. The Governor's...

New Hampshire Representative Seeks Delay of MTBE Liability Waiver to Grandfather N.H. Groundwater Contamination Lawsuit

Even though he voted for the controversial provision in the US House of Representatives' latest energy bill that would relieve manufacturers of gasoline-additive methyl tertiary butyl ether (MTBE) from liability, Representative Charles Bass (R-NH) is reportedly currently drafting an amendment that would delay the waiver's effective date. Bass faces pressure from his home state to delay the liability waiver in order to preserve groundwater contamination lawsuits filed by the State of New Hampshire and local officials against MTBE manufacturers. By saving his home state's lawsuits, Bass's...

We Energies of Wisconsin Awaits Key Court Ruling on Air and Water Permits

We Energies, a utility serving Wisconsin and Michigan's Upper Peninsula, is facing legal challenges on numerous fronts to its proposed "Power the Future" project, a $2.15 billion proposal to develop Wisconsin's first coal power plant to be built in decades. We Energies is battling state agencies over air and water permits, as a docket of lawsuits have been filed attempting to overturn the permits and derail the project. The company's battles have attracted nationwide attention and have implications for the development of similar coal-fired projects in other states. In 2004, Wisconsin state...

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