Message-ID: <21896674.1075862460352.JavaMail.evans@thyme> Date: Tue, 6 Nov 2001 13:20:00 -0800 (PST) From: alliance@eei.org To: alliance_info@listserver.eei.org Subject: Alliance of Energy Suppliers Express Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "The Alliance of Energy Suppliers" X-To: Alliance Information X-cc: X-bcc: X-Folder: \VKAMINS (Non-Privileged)\Kaminski, Vince J\Inbox X-Origin: Kaminski-V X-FileName: VKAMINS (Non-Privileged).pst [IMAGE] Alliance of Energy Suppliers Express-November 6, 2001 Federal Affairs ***Proponents of an Energy Bill Continue to Press Democrats for Senate Floor Consideration*** Proponents of comprehensive energy legislation continued pressure on the Senate Democratic leadership to bring an energy bill to the floor before Congress adjourns for the year. The need for a bill was emphasized by the President, the Secretary of Energy; Senate Republicans; and representatives of veterans' groups, organized labor, and other parties at various venues last week. Senate Republicans informed Majority Leader Tom Daschle (D-SD) that they might offer a comprehensive energy bill as an amendment to the economic stimulus package slated to be considered in the near future if the Leader does not bring an energy bill to the floor. A strategy previously considered, to attempt to attach an energy measure to an appropriations bill, could have been blocked as non-germane. Meanwhile, Sen. Daschle indicated that Congress might not be able to conclude its work by Thanksgiving, and possibly would have to return to Washington following the holiday. Many lawmakers had been focusing on a mid-November departure date, with the latest continuing funding resolution set to expire on the 16th. And across Capitol Hill, House Energy and Commerce Committee Chairman Billy Tauzin (R-LA) suggested that there will not be time to complete congressional action on energy legislation this year, although he commented that the longer lawmakers were in session, the better prospects would become. ***Senate Environment Hearing Points To Lack of Consensus On Multi-Pollutant Measure*** Few signs of consensus emerged last week from a Senate Environment Committee hearing on S 556, the Clean Power Act, introduced by the panel's chairman, Sen. James Jeffords (I-VT). The chairman advocates resumption of efforts to develop and pass a bill to significantly reduce emissions of SO2, NOx, mercury, and CO2 by January 1, 2007. Sen. George Voinovich (R-OH) spoke against the bill, explaining it would "kill our economy," and that the "numbers in this bill are devastating." Sen. Bob Smith (R-NH) said that current laws contain "obstacles to cleaning up the air" and stressed the importance of addressing emissions separate from a command and control system. Agreeing with Sen. Smith, Sen. Christopher Bond (R-MO) termed S 556 the "wrong solution for the problem we face." EPA Assistant Administrator Jeff Holmstead testified that the approach offered in S 556 would unnecessarily raise energy costs and jeopardize energy supplies. Current analysis suggests that it would result in a 32-50 percent increase in consumer rates, he reported. Senate Environment plans a second hearing on S 556 in two weeks. This session will give industry and others an opportunity to testify on the Clean Power bill. However, with lawmakers considering a target adjournment date of November 16, it appears that any future action on a multi-emissions bill may have to wait until the second session of the Congress. EEI NEWS ***America's Electric Utilities Set to Operate Successfully In a Changed Environment, EEI's President Emphasizes*** America's shareholder-owned electric utilities are "well positioned to operate successfully in a changed world," EEI President Tom Kuhn said at EEI's annual Financial Conference. The companies are responding effectively to emerging business challenges, he indicated, as they continue to advocate public policies to promote effective competition and help ensure a reliable and affordable supply of electricity. The environment in which the industry now is operating, EEI's president noted, has been significantly affected by the terrorist attacks of September 11. Today's most important mission is critical infrastructure protection, Mr. Kuhn said, with a new EEI CEO task force working with a variety of stakeholders to strengthen security procedures. Mr. Kuhn also highlighted the industry's financial performance, which remains strong. Revenues were up approximately 63 percent during the first six months of 2001, he reported, a trend that continued through the third quarter. ***KeySpan Earns EEI Index Award*** The Institute has honored KeySpan Corporation for long-term financial achievement with the EEI Index Award, in recognition of the company's 265 percent total return over the five-year period 1996-2000. The award was presented by EEI President Tom Kuhn to KeySpan Chairman and CEO Robert Catell at the association's 36th Financial Conference, held this week in New Orleans. The EEI Index of investor-owned electric utilities is a peer group index that values total return on each electric utility over a five-year period. It is regarded as a benchmark for long-term financial performance, and is used by over one-third of EEI member companies in their proxy statements. For the 1996-2000 period, KeySpan's 265 percent return topped the EEI Index. Other leading performers included Black Hills Corporation, with a return of 240 percent; MDU Resources, 201 percent; Exelon Corporation, 196 percent; and Cleco Corporation, 163 percent "KeySpan's financial success is impressive, and it stands as a tribute to its management and employees," Mr. Kuhn commented. "Over the past five years, KeySpan consistently produced improved financial results through key acquisitions and a growing gas distribution network, pleasing both customers and shareholders." ***EEI Expresses Interest in Working With Task Force Established by President To Bolster Infrastructure*** It is critical for US economic prosperity and energy security that the barriers to expansion of the nation's electric infrastructure be removed, and EEI and its member companies will work with the Energy Task Force established by President Bush to accomplish this objective, announced EEI last week. EEI provided its views in response to the Council on Environmental Quality's request for input on the activities of the Energy Task Force established by Executive Order 13212, signed by President Bush in May. In its comments, EEI pointed out that with a multitude of federal agencies involved in the permitting of energy facilities, the Task Force must facilitate effective coordination among these units and more timely action on the issuance of permits for generating plants and transmission lines. MERGERS & ACQUISITIONS ***FirstEnergy/GPU Merger Closes*** FirstEnergy has announced that its merger with GPU will be finalized tomorrow. [NANCY, THIS TEXT IS FOR TODAY, IF IT GOES OUT TOMORROW, CHANGE IT TO TODAY]. "With today's closing of our merger, we will begin operating as a larger, stronger company, better positioned to provide significant benefits t our customers, shareholders and employees," said CEO H. Peter Burg. FirstEnergy's board of directors now consists of 16 members-10 from FirstEnergy and six from GPU. ***Progress Energy Buying Two Plants From LG&E*** Progress Energy Corporation announced that their Progress Ventures unit plans to buy two electric generating plants in Georgia from LG&E Energy Corporation for $345 million. The wholesale energy group is seeking to expand its reach in the Southeast. The two natural gas-fired projects, owned by a subsidiary of LG&E, generate 1,182 megawatts of electricity. The deal is subject to regulatory approvals, including approval from FERC, and is expected to be completed by early 2002. NEW GENERATION ***Wisconsin Energy Setting Up Generation Subsidiary*** Wisconsin Energy has announced that it has created a subsidiary to design, permit, build and own the new in-state power plants that are proposed as part of the company's Power the Future strategy. Thomas Fehring, corporate secretary of WEC and Wisconsin Electric-Wisconsin Gas has been appointed vice president and general manager of the new subsidiary, which will be named W.E. Power. Mr. Fehring will report to Richard Abdoo, WEC chairman, president and chief executive officer. "As we move forward with Power the Future, it is vital that we focus on the flawless, efficient and effective execution of the plant construction portion of this plan," Mr. Abdoo said. "It is equally important that we continue to focus on our current utility operations." The company has announced it will seek to build 2,800 megawatts of new, in-state generation, including two 500 megawatt combined cycle gas-fired units at the company's existing Port Washington Power Plant site, and three 600 megawatt advanced technology, coal-based generation units at its Oak Creek Power Plant site. The Power the Future plan must still undergo extensive regulatory review on engineering, cost and environmental issues. The company plans to file the necessary regulatory applications and environmental documentation associated with building the new electric generation, which will fall under purview of W.E. Power, later this year. ***Calpine Plans 1,100 MW California Plant*** Calpine Corporation has announced it has applied to build a 1,100-megawatt power plant in central California that could be in operation by mid-2004. The proposed Central Valley Energy Center would be located in San Joaquin, California. "After the Greater San Francisco Bay Area, this is considered California's most electrically vulnerable region," said Curt Hildebrand, Calpine vice president of business development. ENERGY DATA *** Weekly Electric Output-Week Ending October 27*** Electric output reached 65,184 GWh for the week ending October 27 with five of nine regions experiencing a decrease in output compared to 2000. The Pacific Northwest region experienced the greatest decline, with an 18.4 percent decrease from 2000 output levels. Nationwide, there was a 1 percent increase in output compared to the same week in 2000. Year-to-date, the Mid-Atlantic region experienced the greatest increase in output (4.7 percent) over 2000. For more information, email alliance@eei.org . The Alliance Express is a free news service sponsored by the Alliance of Energy Suppliers. This document can be redistributed. Please send questions, comments, or requests to alliance@eei.org , or telephone 202/508-5680. ********** Several EEI meetings have been postponed or canceled. For more information about a specific meeting, go to ( http://www.eei.org/resources/meetings/postponements.htm ) - C.DTF