Maine Oks Jump in Price Cap

The Maine Pubic Utilities Commission (PUC) has allowed Central Maine Power Co. to boost rates by 1.26 percent under an alternative rate plan approved in late 1994. The increase is based in part on an indicated inflation rate of 2.55 percent for the last quarter of 1996.

The PUC found considerable disagreement on whether the rates proposed by the utility would capture the full benefits from restructuring a number of the utility's purchased-power contracts with qualifying cogeneration facilities (QFs).

LEC's Anti-slamming Program Draws Fire

The Michigan Public Service Commission (PSC) has directed Ameritech Michigan, a telecommunications local exchange carrier (LEC) to discontinue its advertising campaign for a special program billed as a protection against "slamming" (em i.e., switching a customer's long-distance service without their knowledge or consent.

Oregon Unbundles LEC Rates

The Oregon Public Utility Commission (PUC) has unbundled services offered by the state's major local exchange carriers (LECs) into a series of network building blocks, pricing the new service offerings in conformance with policies adopted in earlier cases. The ruling retains statewide average rates for local exchange service across all density and distance categories.

The PUC also required the LECs, U S WEST Communications, Inc. and GTE Northwest, Inc., to impute the price they charge to other carriers for basic network functions when setting their own prices.

Telco Business Services Ruled Noncompetitive

An Illinois appeals court has upheld a ruling by the Illinois Commerce Commission (ICC) that certain services offered to business customers by Illinois Bell Telephone Co. are noncompetitive.

The local exchange carrier (LEC) had reclassified the services (distance-sensitive calls, credit card calls, and operator assistance) as competitive to take advantage of pricing flexibility permitted under the ICC's regulatory reforms for the industry.

Indiana Launches LEC Competition

The Indiana Utility Regulatory Commission (URC) has opened the state's local telephone market to competition by ordering local exchange carriers (LECs) to offer "bundled resale" of retail local exchange and related services.

The ruling applies to the state's two major LECs, Ameritech and GTE North, as well as to other smaller companies subject to the provisions of the federal Telecommunications Act of 1996 (Act).

Marginal Cost Drives Electric Rate Design

The Maine Public Utilities Commission (PUC) has approved a new multi-year revenue requirement and rate design plan for Maine Public Service Co. (MPS) designed to serve as "the starting point for MPS and its customers' participation in an increasingly competitive market."

The plan allocates an overall revenue increase of 4.4 percent to produce a 5.5-percent increase in residential rates and a 7.5-percent hike in commercial rates. Other customer groups will see smaller boosts in rates or slight reductions.

Maine Plan Would Spin Off Generation

A draft plan issued by the Maine Public Utilities Commission (PUC) to restructure the state's electric industry, currently under review at the state legislature, would require investor-owned utilities to separate operation of generation assets from the rest of the company by 2000, and to divest themselves of those assets by 2006.

The plan would also require retail electric suppliers to maintain a minimum block of renewable supply, and recommend that the state legislature fund low-income assistance currently provided as part of utility rate structures through a general tax

Cost Decoupling Placed on Hold

While approving an increase in base rates of $26.8 million for Pacific Power and Light Co., the Oregon Public Utility Commission (PUC) has rejected a proposal to adopt a revenue decoupling mechanism and establish a systems benefits charge as part of the rate ruling.