This past week, Entergy, the power system for SE Texas, Lousianan, Arkansas and parts of Missippi, announced that it's High Tension Power Transmission system is up for sale, ostensibly so that it could be used by other companies to give the local customers access to alternate power companies. Ah, competetion, in the the highly regulated marketplace of highly regulated untilities. Does anyone know why? And particularly, why now after this option has been available for years?

-- Anonymous, April 13, 1999

Answers

Deregulation is driving utilities to break up into Genco's, Transco's, Disco's and maybe even Nukeco's. Each company has to decide what part of the business that they are good at and then focus their efforts in that area. So far it seems that making money as a Tranco may be the most difficult. And Transco's may remain fairly regulated with regulated profit margins. Not very attractive to the Board of Directors of most public companies who are looking to maximize their returns.

It will be interesting to see which companies think that they can turn a profit as a Transco.

Jim

-- Anonymous, April 15, 1999

Jim, Thanks for the explanation. I am generally aware, and this has been going on for a long time. ConEd has put all their power plants up for sale. There is serious doubt whether Entergy will be ready. The timinig disturbs me. Also, is the fact that the current lead time for high tension power transformers is 18 months, and we no longer make them in this country.

-- Anonymous, April 17, 1999