Roger D. Feldman is Co-Chairman of Bingham, Dana's Project and Structured Finance Group. In fact, it raises some new tactical questions as well. For privately owned transco fans, it may be remembered, indeed, as the Y2K glitch that was. Here's how this conundrum happened. FERC believes that private transcos are an important part of the way in which Order 2000 will cope with these problems.
Some skepticism is in order.
The Order requires utilities to present plans to divest ownership and control of assets by October 15, 2000. It therefore assumes that option 1, which offers short terms earnings growth, will be the one most frequently selected. Utility non-voting, financial participation in the operations of transferred assets held by qualified RTOs is not restricted in amounts or duration by Order 2000. It also may represent a better insurance policy for continued operating access to customer markets. FERC's private Transco optimism also ignores the fact that private transcos owned by a group of existing regional players seems remote.