California Wires Companies Are the Major Aggregators: Enron Scales Back Its Plans

Saying that California's deregulation law was "written by the utilities," Enron's Corp.'s Energy Services Chairman Lou Pai has indicated that the company, considered the model contender to compete with the state's investor-owned utilities, will scale back plans to enter the market in 1998. Meanwhile, virtually every major power marketer currently operating in the state is backed by one of the state's old monopolies and future monopoly "wires companies." Edison Source is backed by one of Edison International's four subsidiaries. PG&E Energy Services was created with a $100 million investment from Pacific Gas and Electric. Energy Pacific Power Marketing is backed by Enova, which owns San Diego Gas and Electric. New Energy Ventures (NEV) is backed by out-of-state utility Tucson Electric. As the only currently operating major marketer that will not directly control local distribution or "wires" markets under the deregulated system, some considered NEV "too small to compete" against utility-backed marketers. The only other major companies to market power here are The Southern Company, the world's largest power producer. END

Copyright 1997 by the American Local Power News