Fortnightly Magazine - March 15 1997

New York Aims for Flexible Rates

The New York Public Service Commission on Feb. 12 pushed toward competition by approving a multi-utility pilot program for electric retail access for commercial farms and food processors, and by allowing utilities to use their flexible-rate programs to compete against economic-development power offered by the New York Power Authority (Docket 97012/94EO385).

The Dairylea farming cooperative had asked the commission to approve a pilot open to commercial farms and food processors, except those that already have flexible rate contracts. The PSC agreed.

Ohio To Look at Emissions Trading in Fuel Clause Cases

The Ohio Pubic Utilities Commission has approved a series of amendments to its rules on fuel cost adjustments for electric utilities, implementing previously approved guidelines for the ratemaking treatment of emission allowance transaction activities.

In the earlier ruling, the commission had found that its Electric Fuel Component rate mechanism provides the most appropriate forum for review of emission allowance plans, transactions and recovery of associated costs.

Oklahoma Bills Would Revamp Agency, Allow Choice

Oklahoma State Senator Kevin Easley (D) has introduced two bills to the state Legislature. The first bill would introduce competition to the electric utility industry. The second bill would revamp the Oklahoma regulatory commission.

Senate Bill 500, the "Electric Restructuring Act," would allow some consumers to choose their electric suppliers by 1999. All consumers would be able to choose soon thereafter. The measure also calls for the Oklahoma Tax Commission to assess the impact of restructuring on state tax revenues and the feasibility of establishing a uniform consumption tax.

Idaho Utility Ends Capacity Payments to QFs

The Idaho Public Utilities Commission has authorized Idaho Power Co. to stop paying a "capacity adder" to qualifying cogeneration facilities in addition to its own monthly variable energy cost as payment for nonfirm energy.

The adder, 3 mills per kilowatt-hour, originally was devised by the commission to compensate the QFs for the aggregate-system-capacity benefits provided by the QF suppliers. Nevertheless, due to lack of participation in the QF rate-schedule offering, little was provided to the utility in terms of reduction of capacity needs.

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