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Fortnightly Magazine - July 15 1995

DSM Phase-out Ordered for LDCs

The Massachusetts Department of Public Utilities has decided to phase-out existing demand-side management (DSM) incentives for the state's natural gas local distribution companies (LDCs). It said that any claims by LDCs for future recovery of lost margins and incentives will be examined in light of changes in the gas industry and the DSM marketplace. It added that the LDCs should propose a phase-out of their lost margin and DSM incentive programs in conjunction with proposals for incentive-based ratemaking or in their future DSM cases. Re Boston Gas Co., D.P.U. 94-15, Apr.

Byline: 
Phillip S. Cross
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PSE&G Makes Innovative Emission Reduction

Public Service Electric and Gas Co. (PSE&G) and Merck & Co. have announced a trade of emission reduction credits as part of a broad initiative to develop a market-based response to combat the ozone nonattainment problems in the Northeast. PSE&G will sell a minimum of 10 and a maximum of 75 tons of nitrogen oxide (NOx) pollution reductions, called "surplus discrete emission reductions" (SDRs), to Merck in 1995. Merck will use the SDRs to comply with environmental requirements at two industrial boilers.

Byline: 
Lori A. Burkhart
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California Extends Incentive Rate Plan

The California Public Utilities Commission has issued a "positive" performance rating for the first year of a two-year, experimental performance-based rate program for San Diego Gas and Electric Co.'s gas procurement and electric generation and dispatch activities. It extended the plan another year, to facilitate the second year's annual review, and said it expects the plan to stay in place "well into the third year" of the trial. Re San Diego Gas & Elec. Co., Decision 95-04-051, Applica. 92-10-017, Apr. 26, 1995 (Cal.P.U.C.).


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Byline: 
Phillip S. Cross
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