Highway

An eagerly anticipated comprehensive study of the nation’s electrical transmission highway unveiled last Wednesday by the Department of Energy (DOE) recommends that the federal agency review the grid every two years to pinpoint “national interest” transmission bottlenecks. The report also says that Congress should give FERC limited federal transmission siting authority and recommends that regional transmission organizations (RTOs) be made responsible for ensuring that transmission bottlenecks are addressed.

“What we have is basically a two-lane road, and the marketers and everyone else want to use it as a six-lane highway,” Edward Tirello, analyst for Deutsche Banc Alex. Brown, said describing the U.S. power grid. “But someone is going to have to spend a enormous amount of money to [make it happen], and no one is spending any money right now.”

The electric industry is traveling down the highway ofrestructuring like a car whose every cylinder is misfiring. Thatmay sound pessimistic to some, but at least one industry watchersees much unevenness in how generation, transmission andlegislation are evolving and predicts a lot of uncertainty down theroad.

Among the more notable sacrifices being made to get KN Energy “out of the ditch” and back down the highway are the decisions by Richard Kinder and William Morgan to work for annual salaries of $1 with no bonuses. They will become the two largest shareholders of the new company once the merger of Kinder Morgan and KN is completed. They also will be the top two executives.

Among the more notable sacrifices being made to get KN Energy”out of the ditch” and back down the highway are the decisions byRichard Kinder and William Morgan to work for annual salaries of $1with no bonuses. They will become the two largest shareholders ofthe new company once the merger of Kinder Morgan and KN Energy iscompleted. They also will be the top two executives.