Archive for June, 2006

Foreign Ownership

Energy Biz Insider:

Foreign ownership of American utilities is not uncommon. For example, National Grid owns Niagara Mohawk and E.ON owns LG&E Energy Corp. In those cases, state regulators are pleased with the level of capital being placed in new infrastructure as well as the amount of investments in economic development. And with the repeal of the Public Utility Holding Company Act in last year’s energy bill, cross-border offers could become more commonplace.

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PPL’s Rate Caps

LancasterOnline:

Seeing the havoc that’s resulted from caps expiring on rates of other electric companies, PPL is taking steps to avoid the same fate when its cap runs out in December 2009.

It’s too early to predict what will happen when PPL’s cap expires, a change set in motion by the state’s deregulation of the electric industry 10 years ago.

But PPL… and the state Public Utility Commission, which oversees the industry, have no interest in letting history repeat itself.

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NY Without Indian Point

The New York Times:

New York’s electrical grid could get along without the Indian Point nuclear reactors, but replacing their output would be difficult and expensive, according to a report by a special committee of the National Academy of Sciences.

The committee said that electric demand is growing so fast in the region that even if the reactors stay in operation, simply keeping the lights on in peak summer periods will be a challenge in coming years.

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Environmentalists Debate Wind Power

The New York Times:

Dan Boone has no doubt that his crusade against wind energy is the right way to protect the Allegheny highlands he loves. Let other environmentalists call him deluded at best, traitorous at worst. He remains undeterred.

For four years or more, Mr. Boone has traveled across the mid-Atlantic to make every argument he can muster against local wind-power projects: they kill birds and bats; they are too noisy; they are inefficient, making no more than a symbolic contribution to energy needs.

Wind farms on the empty prairies of North Dakota? Fine. But not, Mr. Boone insists, in the mountainous terrain of southwestern Pennsylvania, western Maryland or West Virginia, areas where 15 new projects have been proposed. If all were built, 750 to 1,000 giant turbines would line the hilltops, most producing, on average, enough electricity to power 600 homes.

Wind projects are in the midst of a huge growth spurt in many parts of the country, driven by government incentives to promote alternatives to fossil fuels. But Mr. Boone, who wields a botanist’s trowel and a debater’s knife with equal ease, wants to slow them down with community activism, regulatory action and legal challenges.

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Politics & Utility Rates in MD

Baltimore Sun:

Baltimore Gas and Electric Co. is learning that political storms can strike as suddenly as those Mother Nature serves up.

Hours after it posted instructions for how its residential customers could “opt out” from a plan that would spread out, with interest, the 72 percent rate increase effective July 1, the company learned of Gov. Robert L. Ehrlich Jr.’s call for a special legislative session to address the issue - bringing new uncertainty.

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ACLU Questions AT&T Merger

The New York Times:

The American Civil Liberties Union asked the Federal Communications Commission yesterday to withhold approval of AT&T’s acquisition of BellSouth until it reviews allegations that the companies gave customer records to the government without warrants.

In its filing, the A.C.L.U. cited a provision in the Telecommunications Act that says that in considering a merger, the commission must “weigh the public-interest harms of the proposed transaction against the potential public-interest benefits.”

The group said the F.C.C. should determine if AT&T and BellSouth handed over phone records to the National Security Agency’s surveillance program and, if so, whether that violated any privacy laws.

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Vinson & Elkins

BusinessWeek:

Was Enron’s law firm, Vinson & Elkins, as blind to the company’s shenanigans as it maintains? Internal messages reviewed by BusinessWeek suggest the firm doubted the legitimacy of some of Enron’s business practices

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American Water vs. FLOW

Kentucky.com:

Last year, Felton, Calif., a community of 6,000 in the Santa Cruz Mountains, mobilized its troops, went up against California American Water, a subsidiary of American Water Works, and won the first round in an effort to acquire its local water system.

Over three months, 60 volunteers visited every house in Felton three times, answering questions about why the water company should be publicly owned and what the financial impact of such a move would be.

California American launched a counter-campaign, saying the company was a good corporate citizen that delivered a good product and that property owners wouldn’t save any money if the water district was publicly owned.

In the end, the community overwhelmingly voted to impose a property tax of between $600 and $700 per property owner to raise money to finance condemnation of its water system.

The same themes — a wronged corporation defending itself and a band of citizens struggling against deep corporate pocketbooks — have become standard in campaigns and water battles in towns across the country.

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Maryland LNG

The Baltimore Sun:

While pledging support for eastern Baltimore County residents fighting a plan to build a liquefied natural gas terminal on Sparrows Point, Gov. Robert L. Ehrlich Jr. told those same activists yesterday that he was disappointed that they had asked for a state ethics inquiry into the work of his personal attorney…

Many Dundalk residents have vowed to fight the plans by global power supplier AES Corp. to build a $400 million LNG terminal at the site of the former Bethlehem Steel shipyard.

The residents have gained the support of elected officials at all levels of government but have questioned the depth of the governor’s opposition, given that his personal attorney has worked on behalf of owners of the shipyard property.

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Mirant-NRG

Andrew Ross Sorkin of the New York Times’ DealBook:

THE world of mergers and acquisitions sometimes requires a suspension of disbelief and even a purposeful lapse in rational thinking. But last week, two midsize energy companies, Mirant and NRG Energy, lost their marbles.

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