The Ohio Supreme Court has concluded its review of the municipalization dispute between Toledo Edison Co., an electric utility, and the City of Clyde. The court said that a city ordinance passed on January 17, 1995, seeking to force the utility to stop providing service within municipal boundaries, violated state law in attempting to accomplish the municipalization of Toledo Edison's facilities without the approval of the Ohio Public Utilities Commission (PUC).

Sound bites from state and federal regulators.

LDC Certificates. North Carolina assigns currently unfranchised natural gas service territories. Awards certificates of public convenience and necessity. Docket No. G-100, Sub 69, Aug. 16, 1996 (N.C.U.C. 1996).

Externality Benefits. Utility should not include "net social benefits" when calculating shareholder incentive award. Docket No. G-011/M-95-1372, Aug. 1, 1996 (Minn.P.U.C.).

Area Code Shortage.

In the race toward competition, will outside investments break their poor track record?

The current rash of utility investments outside of the core franchise businesses appears to follow a pattern: a new spree of diversification every decade. Diversification was the rage in the early 1970s before the energy crisis, and revived during the mid-1980s when huge construction programs wound down. It has now reemerged as the threat of competition curtails traditional investment opportunities.

The decision to buy, build, and/or sell information technology assets carries many pitfalls, especially for a regulated utility.

The Texas PUC has approved a plan creating the nation's first independent system operator (ISO) from the Electric Reliability Council of Texas (ERCOT). The ISO will be governed by an 18-member board, with three members each from IOUs, municipal utilities, electric co-ops and river authorities, transmission-dependent utilities, IPPs, and power marketers.

A key part of the ISO plan is an electronic transmission information network (ETIN), which ensures equal access to transmission system information, such as available transmission capacity, product offerings, and prices.

U.S. District Judge Prank Polozola has settled 22 lawsuits involving bankrupt Cajun Electric Power Co-op. and Gulf States Utilities over the River Bend nuclear plant. The settlement turns Cajun's 30-percent share of River Bend over to the Rural Utilities Service (RUS), which holds liens on most of Cajun's assets.

The settlement gives RUS three options: 1) seek a buyer for River Bend, 2) take title in its own name, or 3) give Cajun's 30-percent interest to Entergy Gulf States.

With its new agreement with the Bonneville Power Administration (BPA), power aggregator New Energy Ventures, Inc. (NEV) stands poised to enter California's retail market with the advent of competition.

NEV has agreed to purchase 200 megawatts (Mw) of surplus electricity from BPA for five years beginning January 1, 1998, with an option for an additional 200 Mw of surplus firm power for five years from the time the option is exercised. NEV also will purchase seasonal economy power, which sells for less than 1.5 cents per kilowatt-hour.

Independent electric marketer Wheeled Electric Power Co. (WEP) has filed a petition at the Illinois Commerce Commission (ICC), alleging that anticompetitive practices by Central Illinois Light Co.

Public Service Electric and Gas Co. (PSE&G) has asked the New Jersey BPU to approve a pilot program, SelectGas, that would allow residential natural gas customers in four municipalities to purchase gas from suppliers other than PSE&G. The pilot would run until June 1, 1998. PSE&G's commercial and industrial customers have had choice since December 1994; over 8,000 now participate.

The new service would not require an alternate fuel capability or additional metering, and includes provisions for emergency sales service and offpeak service.

The Education/Electric Buying Group, which represents Long Island public schools, has asked the New York Public Service Commission (PSC) to separately consider its proposal for a competitive electric pilot program. The program calls for electricity purchased at the best price, rather than just through the Long Island Lighting Co. The buying group claims that LILCO has refused requests to discuss the proposal. The school districts estimate they could save $20 million annually in electricity costs without substantially affecting LILCO's net earnings.