News
Con Edison Public Information
Richard D. Mulieri, Director
(mulierir@coned.com)
Telephone: (212) 460-4111, Office Hours,
(212) 460-6981, All Other Times
For Immediate Release: January 6, 1997
MARKET-BASED ELECTRIC POWER AND FUEL RATES
MEANS THAT
CON EDISON'S MEGAWATT-HOUR STORE WILL BE BUSY IN 1997
Con Edison has filed a request with the Federal Energy
Regulatory Commission (FERC) to allow its Megawatt-Hour
Store to sell bulk power at market-based rates.
Currently, rates which are set by FERC tariff(s) at the incremental
cost of power plus a small margin. Cost-based rates are set
by published tariffs and allow only a small profit margin.
"The ability to sell power at market rates will
increase the Megawatt-Hour Store's flexibility and help
prepare Con Edison for the new competitive environment,"
said Ken Bekman, the Store's Proprietor. "The Megawatt-Hour
Store began operation in 1993 and quickly became a major
player in the bulk power market. With the approval of this
FERC filing, we expect to enlarge our trading activities to
rates which are set by FERC tariff(s) at the incremental
cost of power plus a small margin. Cost-based rates are set
by published tariffs and allow only a small profit margin.
"The ability to sell power at market rates will
increase the Megawatt-Hour Store's flexibility and help
prepare Con Edison for the new competitive environment,"
said Ken Bekman, the Store's Proprietor. "The Megawatt-Hour
Store began operation in 1993 and quickly became a major
player in the bulk power market. With the approval of this
FERC filing, we expect to enlarge our trading activities to
a larger geographic area and provide better deals," he
added.
In order to comply with FERC's code of conduct, which
requires the separation of bulk power transactions from
transmission system operations, the Megawatt-Hour Store has
moved out of the Con Edison's Energy Control Center and into
the company's corporate headquarters. This physical move
allowed the company's fuel procurement function for its
fossil power plants to be integrated with bulk power trading.
"We have always purchased large quantities of oil and
natural gas for our power plants. Now we can optimize both
fuel and bulk power transactions in order to act as an
arbitraging agent," said Gary Keevill, Con Edison's
Megawatt-Hour Store Manager of Fuel Resources. "This will
allow the Store to simultaneously trade in both markets,
electricity and fuel," he added.
Parties wishing to conduct bulk power or fuel
transactions through Con Edison's Megawatt-Hour Store can
call Ken Bekman at 1-888-MEGAWAT (1-888-634-2928).
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