Responding to a call by Tennessee Valley Authority's Chairman Craven Crowell to eliminate the $106-million, annual appropriation provided to it, Representatives Bob Franks (R-NJ.) and Marty Meehan (D-Mass.) on Feb. 5 introduced a bill to end that federal payment.

The congressmen, who also co-chair of the Northeast-Midwest Congressional Coalition, distributed a study outlining the $1.2 billion in annual indirect taxpayer subsidies provided to TVA.

California's three largest investor-owned utilities have petitioned the Federal Energy Regulatory Commission to convene a technical workshop on market-power issues raised by electric deregulation. Although a workshop had been held on Jan. 17, the utilities say the need more guidance (Docket No. ER96-1663-000).

The utilities are most concerned with the issue of "must-run" plants, and how to minimize the market power of generating units that must run to maintain reliability.

House Energy and Power Subcommittee Chairman Rep. Dan Schaefer (R-Colo.), recently reintroduced his comprehensive electric restructuring bill, which largely mirrors legislation Schaefer had introduced in the 104th Congress.

The new bill, "Electric Consumers' Power to Choose Act of 1997" (H.R. 655), was presented Feb. 10 and differs from the original only in that it would not preempt the state restructurings already taking place.

The Nuclear Regulatory Commission has placed 14 nuclear reactors on its watch list(emthe highest number in about 10 years(emdue to safety problems. The plant were placed on the watch list by senior NRC managers at their semi-annual performance review of operating nuclear plants and fuel-cycle facilities.

The NRC also sent a letter to Commonwealth Edison asking the utility to explain why it should be allowed to operate six nuclear units at three of its nuclear plants that are on the list. Commonwealth is improving performance at each site.

The U.S. Supreme Court in late February ruled that it is constitutional for Ohio to impose a 5-percent use tax on purchases of natural gas from an out-of-state natural gas marketer, when the same purchases would have been exempt from tax had the purchaser bought the gas from an in-state local distribution company.

Nicholas Bush, Natural Gas Supply Association president, expressed disappointment with the decision and called it a setback for development of a national, competitive natural gas marketplace.

Tightens postings rules for transmission discounts; expands jurisdiction on stranded costs in municipal annexations.

The Federal Energy Regulatory Commission on Feb. 26 revisited its Order 888 open-access transmission decision, reaffirming its core framework but making changes by granting rehearing on two key issues.

Stranded-cost recovery associated with municipal annexation was revisited. In addition, the FERC updated the discounting of transmission services (See, Order 888-A, Docket Nos. RM95-8-001, RM94-7-001, and RM95-9-001).

As I leave the electric utility business after 28 years as an engineer and analyst I would like to relate some thoughts on what makes this business special, even as it gives way to competition. Let me offer some advice to "local" electric utilities on how to keep at bay the "Mega Marketers" and "PanElectrics" of the world, who will soon appear to romance away their customers. Keep your "home-field advantage." Capitalize on your traditional strengths and enduring relationships. These bonds represent a wealth of goodwill earned over years of working with customer communities.

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.

The Dakota Electric Association, which buys its power from Cooperative Power of Eden Prairie, Minn., has asked the Minnesota Public Utility Commission to allow it to provide its members the option to purchase energy generated from renewable resources. Energy produced by wind generators would be made available to consumers in 100-kilowatt-hour blocks of energy. Customers would be allowed to purchase blocks equal to their normal monthly usage. A 12-month commitment would be required. The cost of each 100-kWh block would be slightly higher to reflect the higher cost of wind energy. Lori A.

Wisconsin Electric Power Co., outbid about 60 companies to supply electricity to Chicago's Public Housing Authority, now served by Commonwealth Edison Co., which says it will refuse wheeling services. The housing authority says the deal with WEP would allow it to shave about $5 million off its $10-million, annual CE electric bill. The authority currently pays CE roughly 7.2 cents per kilowatt-hour, but would pay less than 3 cents per kWh to WEP, excluding wheeling charges. The dispute may well end up before the Federal Energy Regulatory Commission.