While directing PNM Gas Services ( a division of Public Service Company of New Mexico) to reduce rates for gas service, the New Mexico Public Utility Commission has redesigned residential rates to reinstate the once-discredited notion of recovering fixed costs in the commodity charge.

In the same case, the commission also rejected recovery of discount costs and other fees the utility paid and a proposal by the utility to "rebundle" sales and transportation rates by end-use class.

The PUC ordered PNM to reduce gas service rates $6.958 million.

The New York Public Service Commission has authorized Brooklyn Union Gas Co., to amend its existing business-incentive and area-development rate programs.

Brooklyn Union provides rate reductions for new or expanding businesses in 26 specified regions under the area-development program. It also has provided similar benefits for new or expanding businesses under a system-wide, business-incentive rate program.

The Minnesota Public Utilities Commission has rejected a proposal by U S WEST Communications Inc. to discontinue offering its Centrex family of business services to new customers.

According to the commission, the local-exchange carrier's plan would make it much harder for new resellers to enter the local telephone market and seriously hamper the development of competition in the state.

U S WEST had claimed that misapplication of "Centron/Centrex" offerings by smaller users had resulted in significant "tariff arbitrage" of basic business service.

Central Maine Power Co. has agreed to allow other providers of wholesale electric power to bid for the right to supply energy to the utility for resale to utility customers who enjoy special discounted rate contracts.

It would carry out its agreement if and when the state of Maine should decide to open its retail electric market to competition.

The utility's promise to allow competitive suppliers to bid the special-rate contract load paved the way for the Maine Public Service Commission to approve new multi-year contracts offered by the utility to two large customers.

The Nevada Public Service Commission has issued a policy statement on recovery of "past costs" incurred by electric utilities in the state, asking for comments in its ongoing investigation of restructuring in the electric industry.

In the policy statement, the commission proposes to set up a "rebuttable presumption" favoring full recovery of all costs maintained on the books by Nevada utilities.

Two states have decided to review the high cost of gas this past winter and the effect the price hike has had on the states' gas utilities.

Florida. While granting requested rate relief on an "expedited basis" to Florida Public Utilities Co., the Florida Public Service Commission said it would conduct a prudence review of the purchased gas costs during its next scheduled PGA audit proceeding.

Sound bites from state and federal regulators.

Pole Attachment Rates. Michigan PSC adopts new costing method to set utility pole attachment rates, aimed at developing competition in telecommunications services and discouraging investment in duplicate facilities by new market entrants. It cautions that changes in markets or regulatory environment might prompt a reconsideration. Case Nos. U-10741 et al., Feb. 11, 1997 (Mich.P.S.C.).

Internet Tariff Posting. New York PSC authorizes New York State Electric and Gas Corp.

Nine Southwestern electric utilities are investigating the feasibility of establishing a regional independent system operator.

The Desert Southeastern Transmission and Reliability Operator (Desert STAR) would be the name of the new ISO. Initial members would include: Arizona Electric Power Co-op; Arizona Public Service Co., El Paso Electric Co., Nevada Power Co., Public Service Co. of New Mexico, Salt River Project, Texas-New Mexico Power Co., Tucson Electric Power Co., and the Western Area Power Administration's Desert Southwest Region.

The U.S.

In an unprecedented act of unity, all 52 members of the California Congressional Delegation have written to the U.S.