New England Electric System has received preliminary proposals from 25 potential buyers for the purchase of its generation business.

The proposals, which were due March 25, are from utility affiliates, independent power producers, and energy companies.

New England Electric System noted that buyers would gain an immediate presence in the regional energy market, which opens to competition in mid-1997 for some Rhode Island customers, and in January 1998 for Massachusetts and New Hampshire customers.

Virginia Power Co. has asked the Virginia Corporation Commission to freeze its base electric rates through 2002, which would set the average residential electric bill in 2002 at virtually the same as it was in 1992.

The base rate freeze is part of an alternative regulation plan submitted to the commission on March 24, which is designed to ensure stability for electric customers and shareholders during the move toward more competitive markets.

According to Robert Bloom, a commissioner at the Pennsylvania Public Utility Commission, an article in the Philadelphia Inquirer regarding the release of the 1996 report card on Pennsylvania utilities contained "misinformation" and was "distorted."

That article reported the PUC refused to issue the 1996 report card because the commissioners disagreed on the amount of performance information that should be released in the new competitive environment (see "Headlines," FORTNIGHTLY, 3/15/97).

Competitive electric provider Electric Lite has drawn the attention of the South Carolina Public Service Commission with its promises of guaranteed rate reductions of 20 percent.

Electric Lite intends to compete against South Carolina investor-owned utilities for customers when the Legislature opens the market to competition.

The proposed "Competitive Power Act," if approved by the Legislature, would open the state's electric markets to competition in January 1998.

According to a new study by Resource Data International, the annual Outlook for Coal and Competing Fuels, U.S. electric load growth is accelerating, with actual utility generation growth expanding at rates comparable to the nation's real economic growth rate for the past two years.

Several electric measures suggest that in the mid-1990s, the nation is becoming more electric intensive. The 1996-1997 report suggests the nation's coal producers should see firm prices and strong demand growth in most producing regions in 1997.

In the first order under a 1995 law designed to increase competition in the electric wholesale market, the Texas Public Utilities Commission ordered Central Power & Light Co. to cut rates.

Meanwhile, Moody's has predicted that legislation introduced in the Texas Senate and House giving choice to small ratepayers is unlikely to pass.

Rate Cut. On March 31, the PUC ordered a $32.3-million rate cut for Central Power & Light Co. retroactive to May 1996. An additional $16.4-million rate cut must be implemented annually in 1998 and 1999 (Docket No. 14965).

Electric restructuring at the state and federal levels is moving forward fast (em too fast for some. Utilities, unions, consumers and even legislators are making their opposition known by filing lawsuits to block or slow down various restructuring initiatives, from New England to Dixie to the Desert Southwest.

Rolling Back Legislation

Pennsylvania and New Hampshire already have enacted legislation to guarantee customer choice in retail electric markets. Even so, some parties are asking for a rollback.

A new study takes a look at using the benefits of electric utility deregulation to increase trade and investment between the U.S. and Mexico. Published by the Salt River Project, or SRP, and the Comision Federal de Electricidad, the study aims to help companies understand the legal and regulatory regimes of the two countries and the potential opportunities to buy and sell power across the border via high-voltage interconnections. Others involved with the study included the

U.S. Agency for International Development, Price Waterhouse and Bechtel.

El Paso Energy Marketing hired Kathy Eisbrenner as senior v.p. Eisbrenner previously was with LG&E Natural Inc.

Cameron Raether, XENERGY senior consultant, was elected to the board of the Power Association of Northern California. Raether serves as chair on several boards and specializes in market evaluations for large electric and natural gas end users.

Robert G. Edwards was elected v.p. at Columbia Division of SCANA Energy Marketing Inc. Edwards joined SCANA in 1992 as a gas sales representative and has held various marketing positions.

Regarding the Hanser, Wharton and Fox-Penner article on real-time pricing ("Real-Time Pricing (em Restructuring's Big Bang," PUBLIC UTILITIES FORTNIGHTLY, March 1, 1997, p. 22), the authors state that RTP programs will defer capacity needs and reduce peak loads. I doubt it. People don't mind paying high prices per kWh for a few hours each year. On the other hand, there is nothing like an old-fashion ratchet to get people to reduce their peak demand.