The American Arbitration Association, in response to a growing level of interest by the electric and natural gas industries, has established the "National Energy Panel" to resolve disputes through mediation and arbitration.

The new panel is composed of 33 of the nation's leading energy industry experts and will resolve a range of disputes involving production, contracts, finance and marketing.

California's three largest investor-owned utilities have asked the California Public Utilities Commission to approve securitization of up to $7.3 billion of stranded costs.

The utilities would issue 10-year bonds through the state infrastructure bank starting by the end of 1997. The "rate reduction bonds" would be repaid through a stranded cost charge levied on present ratepayers. The amounts applied for are: $3.5 billion by Pacific Gas & Electric; $800 million by San Diego Gas & Electric Co.; and $3 billion by Southern California Edison Co.

Moody's on May 14 said it would maintain a negative outlook on The Southern Company's Prime-1 short-term rating for commercial paper following The Southern Company's announcement that it will acquire a 25-percent ownership interest in Berliner Kraft und Licht AG (Bewag), an electric distribution company in Berlin.

Southern will purchase a 25-percent share for $830 million, pending approval by Berlin's parliament and European regulators. A recently established consortium, consisting of Southern Co.

The Conservation Law Foundation of Boston and AES Corp. have teamed up to bid on the 18 New England Electric System power plants recently put up for sale under the NEES divestiture plan that is part of its restructuring settlement.

The unusual alliance puts the conservation group with a former industry adversary. If the alliance succeeds in its bid, it likely would close up to five of the most polluting plants to reduce acid rain and smog. Also, it would protect about 30,000 acres of land from development.

Amtrak has entered an agreement with power marketer Enron Capital & Trade Resources to purchase electricity to power nearly 600 Amtrak and commuter trains each day on the Northeast Corridor between New York and Washington, D.C., and 100 trains a day on the Keystone Line between Philadelphia and Harrisburg, Pa.

Amtrak spends about $40 million a year for electric traction energy, which is purchased from several suppliers. The wholesale contract will reduce those costs nearly one-half.

The Reed Consulting Group has released a study, which predicts that in 10 years, no more than six major companies will dominate the Northeast power market in each of the generation, wires and energy services industries.

The study also said the transition to competition primarily would affect generation and energy marketing.

On the Brink of Competition: RCG's Guide to the Northeast Power Market finds that New England and New York are setting the pace for the nation on power and fuel markets convergence.

The board of directors of the Sacramento Municipal Utility District has approved the introduction of competition in its service territory. SMUD is opening up competition for 100 megawatts of power (em about 5 percent of its total load (em in its new "Direct Access Phase-In Program."

Starting in June, customers may contract with a new energy supplier. Customers could receive power from the new provider in July.

Oklahoma Gov. Frank Keating has signed into law the "Electric Restructuring Act of 1997," S.B. 500, which allows customers choice of electric suppliers by July 1, 2002.

The legislation was written by state Sen. Kevin Easley (D), who originally had called for competition by 2000. The new law calls for the Oklahoma

Corporation Commission to resolve issues surrounding stranded costs.

According to Keating, "[Deregulation] should help strengthen our economic development position when we're in competition with other states for jobs."

Orange & Rockland Utilities Inc. and Central Hudson Gas and Electric Corp. have submitted their restructuring plans to the New York Public Service Commission as part of the commission's efforts to develop a new framework for the electric industry in the state's "Competitive Opportunities" proceeding.

Orange & Rockland's four-year proposal would reduce overall rates by $37 million (Case 97034/ 96E0900). Industrial customers would pay an average electric price of 6 cents per kilowatt-hour.

Texas Gov. George Bush's (R) unexpected electric restructuring legislation that would have opened markets to competition in the state on Sept. 1, 2001 has died. The proposal would have slashed residential rates by 10 percent in the next three years, frozen industrial rates until 2001, and cut small-business rates by 4 percent.

The Bush plan, released on May 5, would have guaranteed that utilities would recover all stranded investment in generation plants at market rates of return.