Bruce Biewald presented “Market Power Analysis: Five Case Studies in Electricity” at the IBC Conference on Market Power in Washington, D.C. on May 24, 1999. The five case studies discussed were: New England, New York City, the APS-DQE merger, Mississippi (Entergy and Southern Company), and the AEP-CSW merger.

Synapse, with assistance from MacGregor Energy Consultancy, prepared a study of the following consumer protection measures: divestiture of generation, codes of conduct, licensing standards, reliability of distribution services, consumer education, and disclosure of information.  The report was presented in the testimony of Tim Woolf before the West Virginia Public Service Commission, Case No. 98-0452-E-GI.  Project completed in 1999.

Synapse prepared a review of Pacific Gas and Electric Company’s request to earn shareholder incentives for 1998 energy efficiency programs.  Synapse provided an overview of the principles that should be used in designing performance awards, a critique of the design of PG&E’s market transformation goals and benchmarks, and an assessment of the amount of awards requested for 1998 performance.  Project completed in 1999.  

Synapse conducted an analysis of the market power implications of the proposed merger, the air emissions of the combined companies, and the barriers to entry faced by potential market entrants.  The results were presented in the testimony of Bruce Biewald in FERC Docket Nos. EC98-40-00, et al.  Project completed in 1999.

Synapse and Resource Insight reviewed the proposals for stranded costs, market prices, standard offer services, and asset divestiture from Connecticut Light and Power Company and United Illuminating Company.  The results were presented in the testimony of Bruce Biewald in Dockets 99-03-35 and 99-03-36. Testimony filed in July 1999.

Synapse worked with MJBradley and Associates for STAPPA and ALAPCO - the two national associations of air pollution control officials in the 55 states and territories and over 165 major metropolitan areas - to develop a comprehensive document on greenhouse gas mitigation options.  Synapse analyzed the cost and emissions reductions from technology options available in the electric generating sector, including combined heat and power production, combined-cycle generation, co-firing and atmospheric fluidized bed combustion, integrated gasification combined cycle, fuel cells, carbon dispatch, and renewables.  Project completed in 1999.

Synapse and Resource Insight prepared estimates of the market value of eight hydro-electric generation facilities in Vermont.  These facilities were assessed using the income approach, the replacement cost approach and the comparable sales approach. The income approach relied upon computer simulation modeling of the New England electricity market. Project completed in 1999, with subsequent support following negotiations continuing until May 2003

Synapse provided testimony before the New Jersey Board of Public Utilities regarding the appropriate use of the New Jersey system benefits charge, on behalf of the New Jersey Public Interest Interveners.  The testimony identified the potential energy savings and the likely air emissions benefits of energy efficiency programs, assessed the cost-effectiveness of the programs, and recommended the amount of the system benefits charge that should be allocated to energy efficiency programs.  Project completed in 1998.

Synapse drafted comments on the Energy Information Administration’s notice regarding the continued availability of electric industry data.  Synapse also provided technical support in an on-going effort to negotiate multi-party recommendations to EIA on data collection and confidentiality.  Project completed in August 1998.

Synapse addressed the advantages of delivering energy efficiency programs through municipal aggregators, as well as the appropriate amount of funding for such efforts.  The results were provided in the testimony of Tim Woolf before the Massachusetts Department of Telecommunications and Energy in Docket No. 97-111. Testimony filed in January 1998.

Synapse analyzed the economic distortions to electricity markets by grandfathering older power plants under the Clean Air Act.  The study estimated that grandfathering allowed existing coal plants to avoid paying roughly $9 billion per year in control costs that are now required of new plants.  Requiring all US coal plants to meet environmental standards comparable to those that apply to new power plants would reduce SO2 and NOx emissions by roughly 75 percent, but would not result in the retirement of many existing coal units.  The study also analyzed policies to make air emissions regulations comparable for new and existing plants.  Report dated June 1998.

Synapse conducted a study requested by the Legislature to "examine how a competitive electric industry may be structured or regulated to protect electric power trade and commerce from unlawful restraints, price discrimination, price fixing, oligopolization, and monopolization."  Synapse reviewed several analyses of market power in New England, including Hartman and Tabors for the Massachusetts Attorney General, Hieronymus for NEPOOL, and Pace for Massachusetts Electric.  Synapse also conducted independent modeling analysis of market power in New England under various assumptions about market structure and mitigation.  Report dated December 1998.

Synapse prepared an analysis of the costs associated with nuclear power plant decommissioning options and recommended that guidelines be established regarding the use of money raised for nuclear power plant decommissioning trust funds.  The results were presented in the testimony of Bruce Biewald before the California Public Utilities Commission in Docket No. 97-12-020. Rebuttal testimony filed in August 1998.

Synapse worked with the Global Development and Environment Institute to study the implications of ozone and NOx that is transported into the Northeast region from Midwest states.  This study compared the costs of controlling NOx from the electricity sectors in both regions and estimated the additional costs that were expected to be incurred in the Northeast to offset the NOx transported from the Midwest.  Project completed in 1998.