Fortnightly Magazine - October 15 1996

In Brief...

Sound bites from state and federal regulators.

Gas Competition. Indiana finds that competition in the gas industry has "not directly benefitted" residential and small commercial customers, in first annual report to legislature on energy policy. July 1, 1996 (Ind.U.R.C.).

Gas DSM. Idaho cites declining need for demand-side management in light of new appliance efficiency standards. Tells Intermountain Gas Co. to end water heater rebates. Case No. INT-G-96-4, Order No. 26546, Aug. 1, 1996 (Idaho P.U.C.).

Gas Price Forecasts.

LEC's Anti-slamming Program Draws Fire

The Michigan Public Service Commission (PSC) has directed Ameritech Michigan, a telecommunications local exchange carrier (LEC) to discontinue its advertising campaign for a special program billed as a protection against "slamming" (em i.e., switching a customer's long-distance service without their knowledge or consent.

Maine Oks Jump in Price Cap

The Maine Pubic Utilities Commission (PUC) has allowed Central Maine Power Co. to boost rates by 1.26 percent under an alternative rate plan approved in late 1994. The increase is based in part on an indicated inflation rate of 2.55 percent for the last quarter of 1996.

The PUC found considerable disagreement on whether the rates proposed by the utility would capture the full benefits from restructuring a number of the utility's purchased-power contracts with qualifying cogeneration facilities (QFs).

Court Oks PUC Review of "Sham Transaction" Claim

The Ohio Supreme Court has cleared the way for state regulators to review a complaint by Cleveland Electric Illuminating Co. that American Electric Power (AEP), a utility holding company, used one of its electric generating subsidiaries, Ohio Power Co., as a "straw man" to circumvent the state's utility service territory laws and serve one of its retail customers.

Maine Finds Electric Price Cap Unnecessary

The Maine Public Utilities Commission (PUC) has decided to forgo a formal price-cap plan for Bangor Hydro-Electric Co. (BHE), an electric utility, finding that traditional regulation would better maintain the proper balance of shareholder and ratepayer interests. The PUC had approved a price-cap mechanism for Central Maine Power Co., another of the state's investor-owned electric utilities (see, Re Central Maine Power Co. 159 PUR4th 209 (Me.P.U.C.

Utility Abandons Standby Generation Control Pilot

The Virginia State Corporation Commission has authorized Virginia Electric and Power Co. to suspend a pilot program for its Standby Generation Control System. (For prior ruling approving the program, see Re Virginia Electric Power Co., 162 PUR4th 363 (Va.S.C.C. 1995).)

The approved pilot authorized the utility to install control equipment on a mixture of customer- and utility-owned generators. Virginia Power would then operate the control system to provide extra generation during peak.

Off Peak

Skittish Stockholders? Polling Arizona

Utilities, like the President, may face a hard fight

for this state's trust.

Should investors continue to put their faith in utilities?

R.I. Legislates Restructuring

Rhode Island Gov. Lincoln Almond has signed the state's new legislation on electric restructuring, known as "The Utility Restructuring Act of 1996" (Public Law Chapter 316), which mandates customer choice by July 1, 1998, or sooner if neighboring states offer retail access before that time.

The law authorizes a 2.8-cent-per-kilowatt-hour stranded-cost surcharge, but allows compensation only for those assets that the Rhode Island Public Utilities Commission (PUC) deems eligible for recovery in prior rate cases or settlements.

V