EnergyWindow MarketElert ^TM - May 2004
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May Elerts

• Texas - TXU may be filing for its second rate increase for 2004 as early as next week, even before a 3.4% increase requested in March is approved by Texas regulators. CenterPoint filed for a $4.5 billion increase in late March, while AEP's CPL and WTU won approval for a 9% fuel increase in March.
• New Jersey/Maryland - High wholesale markets this spring have decreased the opportunities to counter higher standard offer rates and tariffs, but keep alert for opportunities, particularly when a decline in gas and electricity prices present them, and move quickly when they do.
• New York - ConEdison has filed a rate request with the state Public Service Commission (PSC) to provide for major investments in its electric energy infrastructure. The filing calls for $550 million in additional revenues for the company, representing a 6.7% average increase in customer bills. The proposed new electric rates would take effect on April 1, 2005. More at ConEdison Rate Release.

The Electric Deregulation Genie: Back in the Bottle?

Proposed MISO-PJM Market
© 2004 MISO-PJM. Used by permission.

Despite some evidence to the contrary, it would appear the deregulation genie may yet remain outside his proverbial bottle. Recent retrenchments by a few states have sent warning signals to free market proponents, but others are marching forward (click here for an expanded article). Yet, while debate continues regarding retail markets, wholesale markets are quietly expanding to provide the physical and financial infrastructure necessary to promote competition. Such is certainly the case with the PJM Interconnection.

PJM, which used to stand for the Pennsylvania, New Jersey and Maryland power pool, is generally considered to be the best current model for FERC's Standard Market Design - and it is on the move. Chicago-based ComEd joined the interconnection on May first.Duquesne Light in Pennsylvania will be joining in January 2005. AEP's eastern transmission system in Ohio and Dayton Power & Light are slated for integration on October 1, 2004. And Dominion Resources transmission system in Virginia and North Carolina are slated to join PJM in November of this year. PJM isn't likely to stop there, either. There are already plans to integrate PJM with the entire Midwest ISO (MISO), creating a joint and common market that would span from the Atlantic to the Mississippi, and from Manitoba to Missouri.

What does this expansion mean for energy buyers? PJM and the MISO-PJM integration will bring lower transmission prices and liquid spot markets, allowing generators access to more markets and more participants to compete. You can see more details about planned MISO-PJM market expansion at http://www.miso-pjm.com/.

EnergyWindow Honored With CTEK "Client of the Year" Award

Quick Buyers' Tip
It's wise to keep an eye on wholesale markets and consider buying electricity or natural gas well in advance of contract expiration. Waiting until your current contract is about to expire can put you at a disadvantage because your prices will be dictated by wholesale prices as they are at that moment. Also, buying under deadline pressure may reduce your options by leaving little time to entertain new suppliers or product alternatives.

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