Fortnightly Magazine - March 15 1997

Marketing Affiliate Questioned as Utility Shifts Rates

While approving a

three-year settlement on electric rates for Niagara Mohawk Power Corp., the New York Public Service Commission has accepted a highly controversial increase in minimum charges for low-use residential customers.

It also approved a plan to establish an

$11-million, ratepayer-supported fund to promote additional sales to large, alternate-fuel customers, but warned the company that the court would closely monitor relations between the utility and its energy marketing affiliate, Plum Street Energy Marketing.

Bipartisan Energy Politics? 105th Congress Takes on Electric Restructuring in Earnest

"It's going to take a lost of time to understand all the pies."

It's almost spring. There's a new energy secretary(emisn't there? And at least for new electric restructuring bills in Congress. Sen. Frank H. Murkowski (R-Alaska) is chairing "workshops" on deregulation at the Energy and Natural Resources committee.

Everyone's wondering: Which bill take hold? Where will it be and how will it look by the end of the legislative session: dead, alive, or limp?

"Primergy" Merger in Limbo

Milwaukee County District Attorney E. Michael McCann has been appointed to investigate allegations that Wisconsin PSC member Dan Eastman acted improperly by talking with Wisconsin Energy Chairman Richard Abdoo and others about the proposed "Primergy" merger between WE and Northern States Power Co., prompting sources to speculate that too many delays could kill the merger.

The Minnesota PUC reportedly is also investigating ex parte allegations, but Minnesota DPU Administrative Law Judge Allan Klein has ruled that the merger would not be harmful or anti-competitive.

PG&E Must Honor Multi-year Rate Plan

The California Public Utilities Commission has rejected a request by Pacific Gas and Electric Co., for a waiver from scheduled rate reductions mandated under a three-year base-rate plan approved in December 1995.

The court said the company has shown no "extraordinary circumstances" to support breaking the three-year rate contract.

The utility had claimed it would incur greater-than-expected maintenance and service expenses in areas such as tree trimming, meter reading and meter repair.

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