Fortnightly Magazine - November 15 1995

The North Dakota Public Service Commission (PSC) has decided to consider different types of regulation for electric utilities and has issued a set of criteria to guide interested parties in formulating specific proposals for experimental programs. In a separate statement, however, Commissioner Leo M. Reinbold warned against making too much of the decision.

All proposals must promote increased utility efficiency and flexibility in meeting customer needs while allowing customers and shareholders to share in any benefits.

The Michigan Public Service Commission (PSC) has approved a price-cap electric regulation plan for Edison Sault Electric Co. Edison will cap base rates at existing levels, roll its existing power-supply cost-recovery (PSCR) factor into base rates, and suspend the PSCR clause prospectively. The utility will then be authorized to change initial rates upon 30 days' written notice to the PSC, as long as the altered rates for each class do not exceed initial rates.

The New York Public Service Commission (PSC) has canceled efforts to develop a performance incentive mechanism for costs associated with the Nine Mile 2 nuclear power plant. The efforts stemmed from a 1993 settlement that determined recoverable plant operation and maintenance costs. The PSC said its staff had withdrawn from ongoing incentive negotiations, citing a "change in emphasis" from specific to broad-based incentives in electric regulation.

The New York Public Service Commission (PSC) has modified an earlier ruling (Re Restructuring of the Emerging Competitive Natural Gas Market, 158 PUR4th 553 (N.Y.P.S.C. 1994)) that set forth a policy framework to guide the post-Order 636 transition of the state's natural gas distribution industry. The 1994 ruling divided local distribution company (LDC) customers into core and noncore groups, and allowed flexible market-based pricing for unbundled services to the noncore group.