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Energy


	An EIA Report Favoring Energy Deregulation A report recently published by the Energy Information Administration (EIA) of the U.S. Department of Energy indicates that deregulation of the generation of electricity will save end-users money, concurring with what electricity deregulation advocates have been asserting for years. Prices could fall as much as 24%, according to the report, Electricity Prices in a Competitive Environment. To accomplish this, intense competition would be necessary, and producers would need to be able to lower their present costs and employ price-cutting strategies. There would be regional variances. The flip side of this optimistic news is that short term savings may be much less depending on the level of stranded cost recovery allowed. And prices could increase in some low-cost states; it is hoped that these states would do what they could to preserve their low rates. For copies of the report, visit EIA's homepage at http://www.eia.doe.gov. Based on a report in BOMA/Potomac Currents

	Berkeley Building Cuts Lighting Energy Use By 50% The five-year-old Washington building used by the Lawrence Berkeley Laboratory recently gave the lab the opportunity to practice what it preaches. Despite its recent construction, the building's standard lighting specifications were far from today's most cost-effective practices. So, Berkeley included the following lighting elements in the build-out of its 7,500 square-foot suite: more efficient lighting equipment, occupancy and daylighting controls and daylighting design. Their use of off-the-shelf energy-efficient lighting technology cut its office lighting energy use by 50 percent—about 11,000 kilowatt-hours per year.

	Defining The Power Marketer, Broker and Manager Deciding between a power marketer, power broker, or power manager can be daunting, particularly because the lines between them are becoming blurred. The end user's needs and circumstances dictate the answer. Here are some definitions that may help: Power marketer—an entity that buys and sells power and takes title to that power (actually owns the commodity) Power broker—an entity that matches buyers and sellers, but never takes title to that power Power manager—an entity that creates and implements a power strategy; a power manager determines how and when to buy power and other power products, as well as the amount of power and which power products to buy If unsure what exactly the entity is, ask specifically what it does. Check whether the entity is certified as a power marketer by the Federal Energy Regulatory Commission (FERC). An unregistered entity is either a power broker or a power manager.

	Will Businesses Switch States For Deregulated Power? A report in The Wall Street Journal says that neighboring states with the same mix of environmental restrictions, taxes and regulations are likely to have similar electric rates. If the affect of deregulation is a reduction of rates in that mix, with a savings of about 20%, the state with cheaper power will be more likely to attract businesses thinking of relocating. "[Utilities are] all concerned about the big economic sucking sound of new businesses and economic development relocating," from their states, says John Hughes, a spokesman for the Electric Consumers Resource Council, Washington, DC. Even though many states what to pre-empt any federal legislation, many states are joining the trend toward deregulation. However, with the notable exception of Oklahoma, states in the Deep South are resisting deregulation, and hope to keep competition out of the region.

	Free Electric Vehicle Charging Stations At Ralphs Grocery Under the banner, "Meet the Ralphs Clean Air Challenge!" Ralphs Grocery Co., Los Angeles, Calif., and Edison EV, Rosemead, Calif., have challenged the rest of the business community to imitate their recently unveiled plan to install four electric-vehicle recharging stations at selected Southern California markets. Ralphs is the first supermarket chain in the nation to support the transition to clean-air transportation by installing charging stations at their facilities. This is part of a growing network of public EV charging stations currently open or under construction in the West. Ralphs has made the inductive chargers available for free to any electric car driver.

	Deregulation Makes "Green" Electricity Available On January 1, 1998, customers of electric utilities in California and parts of New England will be able to choose an environmentally friendly electric provider in much the same way they currently can choose a long distance telephone service. Many suppliers, including Enron Corp., Central Maine Power Co., and Green Power Corp., are marketing themselves as environmentally friendly. "We see branding the power as 'green' as the only meaningful differentiator in the whole energy sector," says Warren Byrne of Foresight Energy Co., in Oakland, California. Bryne estimates that people will probably pay about $5.50 extra a month for electricity generated from a mix of gas plants and renewable sources such as geothermal and hydroelectric plants. "People want the opportunity to steer their money away from highly-polluting resources to ones that have far less impact." Power generated by renewable resources is scarce in the United States. Solar, wind and geothermal power account for less than 3% of the total energy generated nationally. And there are other problems with marketing environmentally friendly energy. Consumers will not easily be able to verify the source of their electricity. Also one consumer's environmentally benign source of power may not be another's. Nuclear reactors, for example, do not pose air pollution problems but require expensive storage for the radioactive waste that is created. Deregulation of electric utilities is expected to take place in most states, and New England and California offer a preview of some environmental marketing tactics. Some companies in Massachusetts and New Hampshire are promising everything from bulk purchases of clean energy to contributions to the American Lung Association. "It's difficult to make the perfect offer for ecological power, because ideally you could almost say, 'don't use electricity," said Lou Pai, chief executive of Enron's E-Service retail marketing division. "But there's still an opportunity to get a cleaner mix of generation." From the Daily Regulatory Reporter, based on a report in The Wall Street Journal

	Deal Improves Company's Control Of Energy Prices Ormet Primary Aluminum Corp. (Wheeling, W.V) inked a 10-year energy services agreement recently that allows the company an entree into national competitive power markets. The agreement, valued at more than $1 billion, will help Ormet manage power supplies of up to 527 megawatts and ancillary services. It is expected to take effect in January, 2000. The partnership was forged with CNG Energy Services, a subsidiary of Consolidated Natural Gas Co., Pittsburgh, Pa. Debra J. Boger, the company's vice president of administrative services, said "Our goal here, with the approach we have taken, is to give ourselves complete control over the energy supply for two facilities and to allow us to buy the most competitively priced (power) available. That is very important to the security of our operations." Based on a report in Energy User News