Continental power exchange launches trading price index

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prove reliability of the network.”

implemented in stages once FERC

ers with price information. Conti-

He said that with the current sys-

gives the group a green light.

nental says it is launching the

tem, “It is difficult to know who is doing what to whom. Things can get very dicey.”

Continental Pozuer Exchange Launches Trading Price Index

Delgado notes that the new IS0

CPEX price index “to address tha void.” The index will track prices in the central U.S. “Other tracking

ontinental Power Exchange

has launched a price index as

sales in selected areas of the coun-

ing a regional transmission group.

C

mechanisms reflect only reported

a companion to its CPEX elec-

try and exclude the cost of trans-

“If you look at what it will be do-

tronic trading system that enables

mitting power,” says the ex-

ing, an RTG just may not be neces-

utilities and power marketers to

change, based in Atlanta. “One

sary. Concepts are evolving at

buy and sell electric energy, in-

index reports transactions only at

such speed in this industry.”

cluding transmission, in a com-

the California-Oregon

petitive market. The exchange

reference to a Dow-Jones

may end up looking very much like what people have been call-

A

lthough the new IS0 so far

border,” a index

published in T/Q> W~11Street ]o[~J.-

includes only IOUs, Del-

nal.

gado said that “there is no intent

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to exclude public power. . . This is not intended to be an IOU or-

he CPEX index, says Continental, “provides utilities,

ganization, but a network organi-

power marketers and large en-

zation.”

ergy buyers reliable, real-time, straight-up data on spot market

What needs to happen next, Delgado said, “is to put meat on the

electricity transactions that in-

bones.” There are many technical

cludes transmission charges and

issues that need to be worked out,

guarantees actual price discov-

trol areas. “For a system as large

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cess to the terms of deals consum-

as the one we are talking about,

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mated as anyone else on the elec-

he said, including the “mechanics of how to relate” to existing con-

ery.” A user tracking the CPEX price index will have the same ac-

tronic system. “The user sees the

we need to decide what kind of control centers we need, and that

says the price index is needed to

specific terms of actual purchases

sort of issue.”

provide a way to track the real

and sales that do not require addi-

spot market. “Even as investors

tional legwork to determine the

gear up to begin trading futures

transmission levies.”

The American Public Power Association’s

Dave Penn com-

mented, “I understand that the

contracts,” says CPEX, “the elec-

Continental says another advan-

market is driving this, but 1 hope

tricity industry still lacks a means

tage of its new price index is that

these institutions are not devel-

for accurately tracking and report-

“transactions are not rolled into

oped strictly by IOUs. We need

ing transactions in the spot, physi-

one omnibus index covering dif-

state and federal regulators to be

cal market.”

really involved to be sure that

The New York Mercantile Ex-

ferent types of transactions, e.g. peak (7 a.m.-10 p.m. EST) and

these independent system opera-

change is launching electricity fu-

non-peak power.” The exchange

tors are truly independent.”

tures trading March 29. Accord-

is putting out the price index for

ing to economist Charles Stalon,

the central part of the country first

likely will be submitted to the

the main missing link to effective

“because it has sufficient partici-

Federal Energy Regulatory Com-

futures trading “is a robust and vi-

pants to keep track of the region’s

mission late this year, and will be

able spot market” to provide trad-

power needs. The company does

Details of the new IS0 structure

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N.H. Retail TM’zeeling Experiment Gets a Boost

not envision tracking prices corre-

posed to do the study for

sponding to existing regions of

$153,500, well under the $175,000

the North American Electric Reli-

the legislature authorized for the

ability Council because those boundaries impose artificial con-

work. “The commission will accept

straints on how easily power can

nothing less than a frank and ex-

be bought and sold across many

haustive approach to determining

lic Service of New Hampshire

regions-indeed

its strengths and weaknesses, as

and the staff of the New Hamp-

well as what the commission

shire Public Utilities Commis-

Continental is focusing on the

should look like in the year 2000

sion agreed on a program that

grolA-ing demand for short-term

and beyond,” says Commissioner

would see as many as 12,000

pun: hases and sales of electricity

Don Soderberg. The last manage-

PSNH customers gaining access

in four-hour and next-hour time

ment study of the Nevada com-

to other electricity suppliers for a

peric )ds. The company estimates

mission was conducted in 1980.

across the entire

continent.”

T

he New Hampshire retail wheeling pilot project moved

forward in late February as Pub-

two-year trial period. The deal,

that the dollar value of this mar-

which has been filed with the

ket i, about 10 percent of the over-

PUC, follows months of discus-

all $50 billion bulk power market,

sions, as well as pressure from the

or some $5 billion. “Longer-term

state legislature to move toward

trades using CPEX are likely as

lowering PSNH’s rates, which

the industry grows more accus-

went through the roof when the

tomEld to electronic commerce,”

costs of the Seabrook nuclear

says Continental, a subsidiary of

plant hit PSNH’s portfolio.

Mid-American

Energy Co., a Des

Under the program, PSNH will

Moi.nes, Iowa, utility holding com-

free about 35 MW of its load for

pany created last year by the

competition. Customers will be

merger of Iowa-Illinois

Gas &

able to volunteer for the pilot pro-

Electric and Midwest Resources.

ject and then be selected at random. A utility spokeswoman said

Regulatory Gulch I

Nezi!PSC to Review Its Role

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ntrospection is not just limited

I to utilities

in these transitional

times. The Nevada Public Service Commission

has picked Synergy

Consulting Inc. of Folsom, Calif., to conduct a top-down management study of the PSC “to determine the appropriate role, function and organization of the commission in an environment increasingly being changed by competitive forces.” Synergy pro-

the selection details are still under Since then, much has changed in

discussion, as are many of the de-

the industries the commission

tails of how the plan will work.

regulates. “Perhaps the most sig-

Customers will be able to pur-

nificant trend is the introduction

chase power from owners of gen-

of competition and market forces

erating plants or from third-party

to these industries, which may

power marketers, but the PUC

modify the need for continuing,

has not yet settled on the list of al-

comprehensive and traditional

ternative suppliers. The program

public utility regulation,” says

is scheduled to begin May 1, al-

Soderberg. The commission says

though some officials close to the

it expects the work to be done in

discussions expect that date to

time for it to incorporate any rec-

slip a bit.

ommended changes in the budget

PSNH will sweeten the pot for

to be presented to the 1997 legisla-

customers if they do choose to vol-

tive session.

unteer. Customers selected for the

-April 1396

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