Fortnightly Magazine - December 1996

Idaho Reforms QF Rules

The Idaho Public Utilities Commission (PUC) has modified the method electric utilities must use to conduct avoided-cost negotiations with qualifying cogeneration facilities (QFs). A new interim standard for large QF projects (greater than 1 megawatt) calculates avoided costs based not on displaced purchases from a single, hypothetical power plant, but on information in the utility's resource plan.

Penn. Updates Gas Transport Rules

The Pennsylvania Public Utility Commission (PUC) has adopted new rules for intrastate gas transportation tariffs filed by local distribution companies (LDCs) in the state. Earlier in the year it had issued a set of "tentative" regulations to serve as a basis for discussion of changes in the gas industry. See Re Gas Transportation Tariffs, 169 PUR4th 212 (Pa.P.U.C.1996).

According to the PUC, the final rules are based on a "reasonable sharing" of opportunities, risks, and obligations.

Gas LDC Offers Residential Transport Options

The Pennsylvania Public Utility Commission (PUC) has authorized Columbia Gas of Pennsylvania, Inc., a local distribution company (LDC), to 1) expand transportation "to potentially capture all residential customers," and 2) institute a voluntary capacity-assignment pilot for residential and small commercial users only. The new transportation service will give residential customers the option of purchasing gas from a marketer by allowing them to aggregate in groups of up to 50 to meet the 5,000-Mcf volume threshold in the tariff.

Nevada Plans for Electric Bypass

As part of its ongoing investigation of electric industry restructuring, the Nevada Public Service Commission (PSC) has issued a report and solicited comment on appropriate regulatory response to customer bypass requests.

Telco Must Slash ISDN Rates

The Pennsylvania Public Utility Commission (PUC) has decided that Bell Atlantic-Pennsylvania, Inc., a local-exchange telephone carrier (LEC), should reduce rates for its residential digital high-speed service offerings. The residential Integrated Service Digital Network (ISDN) service enables users to access and send voice, data, and imaging services at the same time over their telephone lines.

Electric Discount Satisfies Mich. PSC

The Michigan Public Service Commission (PSC) has approved a request by Detroit Edison Co., to offer a special discount contract to one of its large industrial customers, MasoTech, Inc. The customer had failed in an earlier attempt to compel the utility to offer transmission service so that it could gain "direct access" to other sources of electric power. See, Re MasoTech Forming Technologies, Inc., 168 PUR4th 142 (Mich.P.S.C.1996).

Off Peak

Stranded Costs Projected at -$2.9B to $22B

The Texas Public Utility Commission (PUC) was scheduled this month to consider estimates of retail competition's impact on electric utilities.

A draft staff report, yet to be reviewed by the PUC, estimates stranded costs that span a high of $22 billion to a low of negative $2.9 billion.

Energy/Telecom Combo Hits Boston

Boston Edison Co. (BE) and RCN Inc., a subsidiary of C-TEC Corp., have announced what they say is the "most comprehensive agreement in the nation" between an electric utility and a broadband network company to provide one-stop shopping for energy and telecommunications services.

The two companies have signed an agreement to form a joint venture to provide local- and long-distance telephone service, video, high-speed internet access, and eventually, energy-management and property-monitoring services.

Diversification, Round Two: Telecom Act Has Electrics at it Again.

Once burned, but twice eager, utilities reprise their 1980s-era strategy, this time in the telephone business.

"It's not like they're going to open a pharmacy. It is directly related in some way, or at least arguably."

Earlier this year, 15 utilities grabbed the brass ring: a full-blown chance to enter the telecom business.

Breaking the Voice Barrier: Does Dial Tone Mix with Kilowatt-Hours?Sim Hall

What electrics should know about consumer

preference before diving into telecommunications.Electric utilities would enjoy a strong measure of credibility with consumers should they decide to enter the telephone business.

That finding comes from a recent nationwide survey of more than 1,000 households, drawn from counties with a population of at least 85,000 (see box for details).

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