Fortnightly Magazine - July 1 1997

The American Legislative Exchange Council has adopted a resolution setting December 2000 as the federal date-certain for expediting the transition to competition in the electric power industry.

The date set in the model resolution, which state legislators can adopt, is the same deadline named in the federal bill drafted by Rep. Dan Schaefer (R-Colo.). ALEC, the largest bipartisan membership association of state legislators with 3,000 members, believes that a common timeline between federal and state governments is necessary for a seamless transition to competition.

Sound bites from state and federal regulators.

Gas Curtailment. New York PSC approves updated curtailment and interruption tariffs for many of the state's natural gas local distribution companies. It had asked the LDCs to develop new rules to reflect growing competition and ensure gas deliveries for core customers during a supply crunch. Case 93-G-0932, March 24, 1997 (N.Y.P.S.C.).

T & D Classification. New York PSC opens proceeding to distinguish between electric transmission and distribution facilities.

Signaling victory over one of the more complex issues in the move to competition in the local telephone market, regulators in Connecticut and New York have adopted rate plans for unbundled interconnection services offered by incumbent local exchange carriers.

Both states also recently approved the wholesale discount rate that the LECs must apply to existing services when offering them for resale by competitive companies. See Re AT&T Communications of New York, Inc., 173 PUR4th 274 (N.Y.P.S.C. 1996); Re So. New England Tel. Co., Docket No. 95-06-17, March 25, 1997 (Conn.D.P.U.C.).

The Idaho Pubic Utilities Commission has approved two new electric market experiments to test a market-based pricing tariff proposed by one electric utility and a direct-access pilot program proposed by another.

Market-based pricing. It authorized Idaho Power Co. to offer industrial customers, on an experimental basis, the option of purchasing power under a market-based rate schedule. Customers who contract for 5 to 10 megawatts of firm demand at one delivery point qualify for the pilot tariff program.