Commission Order Research Articles

Smart Grid and AMI: Illinois Pioneers A New Approach

The Energy Infrastructure and Modernization Act of 2011 authorized over $3 billion in grid modernization and reliability enhancements and the establishment of a new performance-based, formula ratemaking process with unprecedented accountability metrics. After the Illinois Commerce Commission's Orders on ComEd's and Ameren Illinois’ formula rate filings had chilling effects on the EIMA investment package, the General Assembly stepped in to remove the uncertainty, boosting the likelihood of success.

Effects of water levels and water level regulation on the supply of suitable spawning habitat for eight fish guilds in the Bay of Quinte, Lake Ontario

Lake Ontario water levels are regulated under the International Joint Commission's Order of Approval. We assessed the availability of spawning habitat for eight fish guilds (grouped by vegetation and spawning temperature preferences) that use nearshore habitat in the Bay of Quinte, Lake Ontario, under regulated and pre-project water level scenarios. Our model used habitat characteristics of depth, substrate, vegetation cover and temperature across 14,876 habitat units and guild-based habitat suitabilities to assess the weighted suitable area (WSA) available for spawning. During the modelled 1951–2000 period, regulated water levels were on average 0.25 m lower than pre-project levels and varied about half as much. Overall, the large and shallow upper bay within the Bay of Quinte benefited from pre-project flows whereas the smaller and deeper lower bay benefited from regulated flows. Higher variance in water levels increased highly suitable wetland area and higher mean water levels increased the availability of shallow flooded area in the upper and middle bays, where the bathymetry is gradually sloping. The number of days over which WSA was available was generally greater for high temperature guilds, and appeared to decrease when temperature mismatches occurred in a season. Results emphasize the complexity of the relationship between fish habitat supply and water level regime.

The Financial and Operational Impacts of FERC Order 636 on the Interstate Natural Gas Pipeline Industry

The Federal Energy Regulatory Commission's Order 636 fundamentally altered the regulatory and operational environment of the natural gas industry in 1992, as the culmination of several directives aimed at relaxing regulation and fostering competition. We hypothesize that gas pipeline firms subsequently changed their operational and financial behavior in ways consistent with reduced balkanization, increased competition, and reduced expense preference behavior. Our results indicate that these firms have become more homogeneous financially but less so operationally. We find evidence that the marginal profitability of various pipeline activities has responded more to financial market conditions than to the regulatory environment.

Order 636 and the U.S. natural gas industry

An intent of the U.S. Federal Regulatory Commission's Order 636, promulgated in April 1992, was to promote competition and efficiency in the transportation sector of the natural gas industry. Additionally, the Order altered the roles of the traditional players in the industry by increasing not only their options for purchase and sale of natural gas, but also their risks. Increased options have the potential of increasing competition and efficiency, not only in the transportation sector, but also in the distribution sector. This paper examines impacts of Order 636. Using annual, aggregate, U.S. price data, a Wilcox rank sum test is employed to test for statistically significant differences between the pre- and post-636 eras. Results indicate median revenues attributable to the transportation sector have declined since the implementation of Order 636. 1 Transportation revenues, defined as the difference between city gate and wellhead prices, are used in order to remove the impact of wellhead price decontrol. 1 Although there are naturally a number of factors that may affect transportation revenues, the decline in median price can be attributed, at least in part, to increased competition, increased efficiency, or both. At this level of aggregation the effects can not be segregated. Results also indicate that although decreased costs of transportation have at least partially been passed on to final consumers, local distribution companies have not significantly altered their business practices when dealing with customers.

The new-but is it improved?-power system [deregulation issues

In this paper, the author examines the effect that deregulation will have on the US power system. The paper details how the electric power industry in the USA is undergoing major changes, both politically and technically, as a result of the Federal Energy Regulatory Commission's Orders 888 and 889 issued in 1996. These orders essentially deregulate the transmission network, allowing producers and customers access to the network for electricity transactions.

Regulatory, technical pressures prompt more US salt-cavern gas storage: T. F. Barron, Oil & Gas Journal, 92(37), 1994, pp 55–67

Natural-gas storage in US salt caverns is meeting the need for flexible, high delivery and injection storage following implementation Nov. 1, 1993, of the Federal Energy Regulatory Commission's Order 636. This ruling has opened the US underground natural-gas storage market to more participants and created a demand for a variety of storage previously provided by pipelines as part of their bundled sales services. Many of these new services such as no-notice and supply balancing center on use of high-delivery natural gas storage from salt caverns. Unlike reservoir storage, nothing restricts flow in a cavern. The paper discusses the unique properties of salt that make it ideal for gas storage, choosing a location for the storage facility, cavern depth and shape, cavern size, spacing, pressures, construction, conversion or brine or LPG storage caverns to natural gas, and operation.

Marketing natural gas after order 636

This paper examines the impact of the Federal Energy Regulatory Commission's Order 636 on the marketing of natural gas. To date, on-demand delivery of gas to local distribution companies has been provided solely by interstate pipelines. Order 636 opens the market to competition by unbundling the various components of the service and requiring that they be separately offered and priced. The fundamental economic characteristics of marketing gas are examined. These fundamentals support the view that firms will tend to rebundle components in order to offer a delivered product, and that marketing on-demand gas service is naturally oligopolistic.

Taking the Bitter with the Sweet: Sugar Refiners and the Canadian Regulatory State, 1904–20

IN OCTOBER 1920 the Board of Commerce tried to prop up rapidly falling sugar prices. This decision appeared as a perversion of the agency's mandate to fight the rising cost of living and engulfed the already unpopular board in a controversy it would not survive. The commerce commissioners chose to protect the wrong industry at the v•mng time: the 'sugar barons' traditionally were suspected of price collusion and other Canadian businesses were struggling to survive the autumn 1920 recession. As one leading Nova Scotia merchant explained: 'The refiners, in common with every other business man and industry, must take the bitter with the sweet. '• Protests against the commerce commission's order besieged the already unpopular Union government. The commerce commission was not the only government agency engulfed in a controversy involving sugar refiners. In 1918 the Board of Railway Commissioners, the agency responsible for railway-freight rate regulation, had been accused by Maritime business interests including sugar refiners of mishandling wartime rate changes. The commission, it was contended, had succumbed to pressures from refineries located in Ontario and Quebec and had allowed rate changes to weaken the competitive position of their Maritime competitors, A

Water Company Required to Share Cost of Main Extension

When the private service line serving a Pennsylvania home developed a leak, the family proposed to run, at their own expense, a new oneinch private line to their home. The water company rejected the proposal because the extension main had to be at least six inches in diameter. The public utilities commission ordered the cost to be equitably shared between the family and the water company. The water company appealed the case, but the appellate court ruled that it would be unreasonable for the family to bear the cost of a main extension project because they happened to be the first customers whose private line failed. The public utilities commission's order was affirmed.

Texas Is Testing Ground for Impact of Coal Use on Economic Growth

A discussion of the use of coal in Texas in place of natural gas or oil, showed that the Houston Lighting and Power Co. (HLPC) was impelled by the rising price of natural gas to turn to other fuels. The company has a coal-fired plant under construction with two 660 Mw units due to come into service in 1978 and 1979. HLPC expects to add 750 Mw of nuclear-generated power to its system between 1982 and 1984. By 1990, HLPC plans to have 5300 Mw of coal-fired plant capacity and 2000 Mw of nuclear capacity, which amounts to an increase of about 70% of the present total of slightly more than 10,000 Mw capacity of gas-fired plants. However, HLPC expects continued economic development in the area to increase the demand for electricity so that all its plants will be needed. This runs counter to the Texas Railroad Commission's order to reduce the use of gas by 25% by 1985, compared with 1974-1975 levels. The City Public Service Board of San Antonio has experienced rises in the price of low-sulfur Wyoming coal and in the price for its transportation. Other aspects of the problem are also discussed, e.g., the increased usemore » of coal will cause additional air pollution, particularly with particulate matter, sulfur oxides, and nitrogen oxides.« less

The Southern Passenger Fare Case

The Commission's order had directed that intrastate railway passenger fares in Alabama, Kentucky, North Carolina, and Tennessee be raised from 1.65 cents per mile to 2.2 cents, that round-trip coach rates be proportionally raised, and that sleepingand parlor-car fares in some of the states also be increased. The regulatory bodies of the four states asked for injunctions to set aside the increases. The Stabilization Director, through the Office of Price Administration, intervened in behalf of the states, and the various railroads involved in behalf of the defendant Commission. Since the decision of the Supreme Court in this instance apparently runs counter to a long line of decisions reaching back to the so-called Shreveport Case4, the facts, the reasoning of the Court (including that contained in the dissenting opinion), and the possible implications, appear to warrant brief review. Prior to 1936 the basic passenger fare in coaches on Class I railroads was 3.6 cents a mile. Some roads maintained lower intrastate fares. From December 1, 1933 through November 14, 1937 a number of southern railroads experimented with an interstate fare of 1.5 cents for one-way trips and 1.35 cents for roundtrips. Certain other roads tried a 2-cent interstate fare. In 1936 the Interstate Commerce Commission ordered the basic interstate coach fare reduced to 2 cents, effective June 30,5 at which level it remained until February 10, 1942 when a 10 per cent increase was granted to be in effect for the duration of the war and for six months thereafter.6 However, it should be noted that the Commission order lowering the basic rate to 2 cents did not disturb the experimental rates in effect in the South as these fares were held to be not unreasonable or otherwise unlawful (p. 257). The experimental rates were increased to 2 cents one-way and 1.8 cents roundtrip through January 14, 1939 when they were again dropped to the former 1.5 and 1.35 cents level, at which point they remained until February 10, 1942 when

Administrative Law. Corporations. Securities and Exchange Act. Stockholder's Right to Review of Commission's Orders

Administrative Law. Corporations. Securities and Exchange Act. Stockholder's Right to Review of Commission's Orders

Securities Exchange Act of 1934. Judicial Review of Commission's Orders on Disclosure of Information

Securities Exchange Act of 1934. Judicial Review of Commission's Orders on Disclosure of Information

Proration in Texas in 1931

Efforts made in the year 1930 and in previous years restricted productionmost of the fields of Texas to a point that was satisfactory, at the beginningof 1931, to the majority of producers and buyers. In the Panhandle, North Texasand West Central Texas districts, a few operators with refinery affiliations orcontracts either ignored, or by virtue of injunction suits, did not comply withthe Railroad Commission's orders, and there was some oil sold at less thanposted prices, which with the Oklahoma City difficulties, caused the firstgeneral price reduction. More could have been done perhaps to help thesituation on the Gulf Coast and in Laredo district, but natural advantages arenot readily surrendered. East Texas Proration troubles in 1930 were insignificant when compared with those of 1931. In January, 1931, efforts were begun to convince the producers and citizens ofEast TExas of the necessity of curtailment. Opposition quickly developed andmeetings were held in the downs of the region and proration denouncedvigorously. Notwithstanding a strenuous campaign for additional legislationwaged by many producers, the regular session of the State Legislature refusedto strengthen the conservation laws and passed out the Marginal Well Bill, designed to prevent the Commission from prorating small wells. The Railroad Commission held a heated hearing on EastTexas in the latter part of March. During April the Commission issued threeorders based on the Yates plan for the proration of the East Texas field. Eachsucceeding order raised the allowable for the field. In June opposition heldmore mass meetings at which a plan based on acreage was endorsed. Apparently onthe theory that any plan was better than none, the Commission issued an orderon July 2 embodying some of the features of the proposed plan, limitingproduction to 250,000 bbl. per day, and dividing the producing area into20-acre units participating equally in the outlet. Owing to the bringing in ofmany wells and the many violators of the Commission's orders, productionincreased to such an extent that prices went as low as 5 cents per barrel.

Interstate Commerce. Competition. Review of Commission's Orders

Interstate Commerce. Competition. Review of Commission's Orders

Cost and Value of Service in Railroad Rate-Making

I. General viewpoint of this paper, 205. — II. Preliminary survey of railroad income and outgo, 208. — III. An industry of increasing returns? 209. — Relation of cost to growth of traflfic, 210. — Influence of density of traffic, 214. — Cost of service and value of service as factors in rate-making, 219. — IV. Bridging the gap between theory and practice; review of selected authors, 221. — Launhardt, 222. — Rank, 223. — Talcott, 224. — Shinn, 225. — Erickson, 226. — Millard, 227. — Interstate Commerce Commission's order of 1915, 231.

Railroads. Regulation of Rates. Statutory Penalty for Violation of State Commission's Order

Railroads. Regulation of Rates. Statutory Penalty for Violation of State Commission's Order

Public Service Companies. Regulation of Public Service Companies. Telephone Companies: Commission's Order Compelling Physical Connections

Public Service Companies. Regulation of Public Service Companies. Telephone Companies: Commission's Order Compelling Physical Connections

Public-Service Companies. Regulation of Public-Service Companies. Telephone Companies: Commission's Order Compelling Physical Connections

Public-Service Companies. Regulation of Public-Service Companies. Telephone Companies: Commission's Order Compelling Physical Connections