1997 AGN JUL 01 I14 - Laserfiche WebLink

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JUN -23-199? 11:09 P.07 Period between 1992 and 1994. Since then, Colton has experienced an increase in electric sales. Load growth is expected to continue in the next five years, though uncertainty exists related to the introduction of a competitive electric industry in California in 1998. in 1998, a new county medical center is anticipated to increase retail sales by about twenty percent. As is the general characteristics of southern California utilities, Colton's load peaks in the summer, driven by air conditioning demand. It has been projected that Colton's annual load factor will improve starting in 1998, but will remain under 50%. 2. Chapter 2 THE ELECTRIC UTILITY DMUSTRy ENVIRONMENT 2.1 FEDERAL, LEVEL The electric utility industry regulatory compact at the federal level underwent profound changes since the early 1990'x. The Energy Policy Act of 1992 (EPAct) introduced first time the concept of non-discriminatory transmission service to all users of the high-voltage transmission facilities for wholesale transactions which have historically been monopolized by the transmission owners. With advent of this law, the industry has seen a tremendous proliferation of non-traditional wholesale competitors, such as power marketers, exempt wholesale generators (EWGs), power brokers, and power marketing affiliates of the vertically integrated utilities. Furthermore, the concept of integrated Resource Plan is introduced, whereby the framework of evaluating the utilities' resource procurement rationale is changed from a "prudent investment and -based" framework to a more "competition -oriented total resource evaluation" framework The amendments to the Hoover Act, as part ofEPAct of 1992, specifically required' Hoover customers to prepare and submit an Integrated Resource Plan (IRP) using such framework for future resource planning considerations. More recently, FERC issued its Orders 888 and 889, which unequivocally and concretely dealt with the issue of open access non-discriminatory transmission service on the wholesale in a generic manner. Such dramatic changes already have had profound impact on the wholesale competition. The vivid testimony of these changes is that as of today, the non-traditional wholesale power marketers do more buying and selling of electricity than traditional vertically 5