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Fortnightly Magazine - July 15 1997

Off Peak

Minnesota has lots of drafts, but no final plan.

So you think your state has been busy? In Minnesota, the 1997 legislative session saw more than a dozen new bills introduced on electric, gas and energy issues.

At the start of the session many expected that electric deregulation would play a major part in the legislative program. However, Gov. Carlson reports now that legislators will defer work on the issue until the 1998 session. Several electric industry deregulation bills were introduced at the end of the session, but when last we checked no hearings had been held.

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Does Activity-Based Cost Management Have Any Relevance for Electricity?

When viewed as serving market segments, utilities differ little from manufacturing companies, where most costs are shared among products and processes.

Activity-based cost management has had a tremendous impact on manufacturing enterprises; and its use has spread to some service industries such as banking, insurance and health care. ABCM encompasses two well-known management concepts: activity-based costing and activity-based management. Now that electric utilities are gearing up for competition, it is time to ask if ABCM has any relevance in the public utility industry.

Byline: 
Sidney J. Baxendale, and Michael J. Spurlock
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N.Y. Would Reimburse Bypassed QFs

The New York Public Service Commission has set up procedures to reimburse qualifying cogeneration and small power production facilities if any of the state's seven investor-owned electric utilities should curtail purchases of power from the QFs. The Independent Power Producers of New York Inc. blasted the decision.

The PSC said it will review QF requests for reimbursement if a utility is alleged to have curtailed purchases unfairly.

Byline: 
Lori A. Burkhart
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