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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (14678)	11/7/2002 10:31:21 PM
From: energyplay	Respond to of 206131

Not to be a Black Helicopter conspiracy theorist, but part of Wall Street is unhappy with TECO - Reuters Morgan Stanley challenges Tampa utility rate hike Thursday November 7, 1:33 pm ET WASHINGTON, Nov 7 (Reuters) - Morgan Stanley (NYSE:MWD - News) said a Tampa utility's plan to increase its transmission and ancillary services rates is unfair and would reduce competition in the wholesale electricity market. Morgan Stanley, which trades wholesale electricity throughout U.S. markets, asked the Federal Energy Regulatory Commission in a Wednesday filing to reject a request by TECO Energy's Tampa Electric (NYSE:TE - News) in October for rate changes. Tampa Electric proposed to increase rates for firm and non-firm transmission serivce, some ancillary services, and to adopt peak and non-peak rates for some services. Ancillary services include scheduling, load frequency control and energy imbalances on transmission lines. It also asked for permission to recover a FERC annual charge from its transmission customers. The utility proposed that the changes to its tariff become effective on Dec. 16, 2003. Morgan Stanley said the rate hikes would be "inconsistent" with FERC's push this year to develop standard market rules for all U.S. regional power markets. The rules are aimed at promoting competition, reducing congestion, monitoring markets for unfair trading, and capping prices when they go too high. "Rather than bringing markets closer together, rate changes such as those proposed by Tampa Electric only will further divide already mismatched markets and will make it even more difficult for the commission and market participants to reach a consensus for a standard market design," Morgan Stanley said. Also, allowing rate increases now would reduce Tampa Electric's incentive to adopt standard market rules, Morgan Stanley said. Separately, the Florida Municipal Power Agency also protested Tampa Electric's planned rate increases. The agency finances generation and transmission projects for its 29 municipal utility members in the state. The agency told FERC it objected to Tampa Electric's proposal to receive a 12-percent return on equity, saying the utility has yet to justify such a high level. Tampa Electric owns transmission lines in central Florida used by many state municipal utilities. The case is pending before FERC in docket ER03-48.