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PUHCA reform to make IPPs consolidate

✍ Scribed by Willett, Robert E.

Publisher
John Wiley and Sons
Year
2008
Weight
314 KB
Volume
7
Category
Article
ISSN
0743-5665

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✦ Synopsis

Abstract

Over the last decade, independent power producers (IPPs), which produce electricity and which are not regulated by the Public Utility Holding Company Act (PUHCA),have been a bright spot in the gas‐demand picture. Although today only about 35 percent of electric power is generated by these companies, by the endof the decade this proportion should triple.

The impact on the natural gas industry is substantial. Slightly less than two‐thirds of the electric power that is provided by IPPs is provided by gas (the reminder is hydroelectric). Moreover , new electric generation is forecasted to provide about half of the growth that the gas industry will enjoy for the rest of the decade.Thus, legislation that affects IPPs could sharply affect the growth of the natural gas indusrty. Such legislation , which reforms PUHCA, has been proposed in a Senate bill, the competitive wholesale electric generation bill

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