Utilities

QUIZ

What state in the South created the most jobs per million people in 2001? Here are your choices: (a) Virginia (b) Kansas (c) Tennessee (d) Arkansas. (scroll down for answer)

Initial Effect of Texas Deregulation Minimal

After commercial, industrial and consumer users of electrical power experienced blackouts in California last year, all eyes were on Texas and its free market that began January 1 of this year. So far, there have been no major changes in the Lone Star State's energy front. Advertising campaigns have touted lower prices from alternative sources since the beginning of the year, yet the consumer front has seen few switches to date. Large users in Texas have had plans in the works for some time now to switch providers but to date there has been little change.

Incentives for Using "Green Power" Never Been Higher

More and more states are using incentives to lure businesses and consumers away from power produced by fossil fuels to power produced by wind, solar or other renewable sources. Forty-two states now offer tax credits, rebates and other incentives to businesses and consumers when they choose renewable power sources for their homes or business. The growth in renewable power facilities has given users more options in the use of "green power."

Large Gas Users to Pay Surcharge in Georgia

Natural gas deregulation in Georgia has created a mess. Deregulated in 1997, natural gas users both on the industrial and residential sides, have seen one problem after another including bankrupt gas marketers and higher rates. Now legislators in Georgia have voted to restore provisions authorizing use of a surcharge for large natural gas users such as paper mills and steel plants for consumer refunds and rate drops. The legislation, sponsored by Gov. Roy Barnes is an effort to reform Georgia's 1997 natural gas deregulation law.

Florida Utility Says It's Set for Next 10 Years

If deregulation has taught us anything to date, it's that large states like California can come up short on capacity. Officials with Florida Power & Light, however, maintain they have a plan that will meet electricity needs for users in the Sunshine State for the next decade. The plan, filed with the Florida PSC, includes the company increasing capacity in the state by 32 percent over the next 10 years by adding new power resources. FP&L has announced plant expansion projects in Manatee and Martin counties (those plants are being challenged by several groups) and the company is also expanding plants in Fort Myers and Sanford, near Orlando. The company has said it will ask for competitive bids to find the least-cost options when adding new capacity.

Major Gas Line Project Approved

The non-environmental parts of Duke Energy's proposed natural gas line through Tennessee, North Carolina and Virginia received federal approval in April. Called the Patriot project, the new gas line will bring natural bas to parts of rural southwestern Virginia for the first time. It will also provide fuel for a number of new electric power plants throughout the region.

Ameren Files to Raise $1 Billion

St. Louis-based Ameren Corp. has filed with the U.S. Securities and Exchange Commission to raise up to $1 billion in a mixed securities offering. The utility said it would use the proceeds from the sale to finance its subsidiaries' construction and maintenance programs, repay outstanding debt and to finance investments or future acquisitions.

Duke Gets Tax Break in Florida

Charlotte-based Duke Power is interested in building a large power plant in St. Lucie County, Fla. The county's commissioners have made building that plant more attractive to the utility by voting 3-2 to give Duke a three-year property tax exemption if the plant is built. The tax break is the largest in St. Lucie County history, saving Duke $3 million over three years. County Property Appraiser Jeff Hurst objected to the tax exemption saying the company is not eligible or qualified. He explained that the plant will employ only 11 people, which does not meet the minimums of the tax exemption program approved in 1992.

Duke Spending $3.4 Billion on New Plants

Duke Energy NA is almost doubling its power generation capacity when eight new power plants and one expansion come online this summer. Currently, the company has a generation capacity of 8,700 megawatts. When the new power plants are operational, that will increase to 15,400 megawatts. Duke is spending almost $3.4 billion on the facilities, which are located in Arkansas, Georgia, Kentucky, Mississippi, Ohio, Arizona and California.

CP&L Improves Reliability

Last year was the fourth consecutive year that CP&L, a subsidiary of Progress Energy, has improved the reliability of its transmission and distribution of power. In 2001, the company improved reliability by 27 percent and has improved it by 60 percent since 1997. Since 1997, CP&L, which serves customers in the Carolinas, has spent $191 million in distribution technology, improved equipment and preventive maintenance to improve reliability.

Utility Group Forms

The Municipal Electric Authority of Georgia, Santee Cooper, Nebraska Public Power and the Jacksonville Electric Authority have combined to create a group of municipal utility operations who want to share ideas and minimize costs. The non-profit association will address utility issues such as planning, distribution, energy transport and purchasing among its prospective members.

QUIZ ANSWER

The Southern state that created the most net new jobs per million people is Kansas with 20,384 jobs per million persons in 2001. Following Kansas was Virginia (16,901), Tennessee (15,789) and Arkansas (15,110).