Notes
Outline
Antitrust Issues Meet Natural Gas & Electric System Reliability Issues in a Competitive Marketplace
Mark T. Maassel
NiSource
Historical Context
Utilities had right and obligation to serve
Monopoly
Granted by states or FERC
Often included exclusive franchise areas
Reliability Planning - Historically
Occurred voluntarily between companies who did not (could not) compete
Coordinated, cooperative planning occurred
Technical exchanges
Standards
Consistent, voluntary standards ensured reliability
Planning Occurred
Electric Industry
NERC
Regional Reliability Councils
Gas Industry
No Single Formal Group as in Electric Industry
Competition Changes Things
Electric Industry
Electric Industry - (Formerly Highly Vertically Integrated)
Asset Divestiture (Power Plants)
Merchant Power Plants
Congested Interstate Transmission Network
No Ability to Mandate Reliability in Operations
Congestion Management is an Issue
Transmission Loading Relief (TLR)
Competition Changes Things
 Gas Industry
Gas Industry (Historically Not Vertically Integrated)
Peak Day Planning done by Individual Company, working with the Interstate Pipeline
In some areas, regional planning occurred
Congestion Management is an issue
Operating Flow Orders (OFO)
Issues to Consider
Information which should be Shared
What Information
How is that Information Shared
Reliability Planning Among Competitors
How does the Information Affect Reliability
How does the  Information Affect Competition
Who Does the Reliability Planning
Other Questions to Consider
Who has the Responsibility to Implement the Emergency Plan
Abuses which might Result from the Information Shared
Options
Legislation
NAERO Provides an Express Exemption to Anti-trust Laws
Continued Regulatory Oversight
Massachusetts
Marketplace with Antitrust Oversight
Combinations
Critical Issues - Unclear Answers