Fortnightly Magazine - January 1 1996

Frontlines

On Saturday, November 11, WPL Holdings, Inc. announced its three-way merger with IES Industries Inc. and Interstate Power Co. to form Interstate Energy. The very next day, in a full-page ad that ran in Milwaukee Journal-Sentinel, Madison Gas & Electric Co. launched its counteroffensive, featuring Boris the Pig.

"Hi (em I'm Big Boris," the ad begins. (The face of a handsome pig with a large snout stares back at the reader.) "My friends and I crave Radical Electric Deregulation.

Capitol Hill: The Bells Toll for PURPA

The beleaguered Public Utilities Regulatory Policies Act of 1978 (PURPA) has a new assailant (em U.S. Rep. Cliff Stearns (R-FL). Stearns's bipartisan legislation, H.R. 2562, the "Ratepayer Protection Act," proposes repeal of section 210 of PURPA, which requires electric utilities to purchase power at avoided costs.

People

Thomas L. Yohe of Philadelphia Suburban Water Co. was appointed to the Cleanup Standards Scientific Advisory Board. The 13-member board is a new division of Pennsylvania's Department of Environmental Protection.

NorAm Energy Corp. has formed a new unregulated retail subsidiary, NorAm Energy Management (NEM), and appointed Rollie Bohall senior v.p. and COO. David Houghtby, formerly of Minnegasco, will be NEM v.p.

Financial News

When Niagara Mohawk Power Corp. announced its competitive restructuring plan on October 6, 1995, it broke ranks with what had been a curiously united front against competition. The opposition had learned to genuflect before the altar of competition, but then fight doggedly to keep markets closed. This united front had implied that competition would produce largely the same impact on all utilities, but that is not true. Competition offers lucrative long-term opportunities for some utilities and potential disaster for others.

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