Maine Requires Separate Subsidiary for Noncore Services

Responding to numerous complaints concerning Bangor Hydro-Electric Co.'s entry into the security alarm market, the Maine Public Utilities Commission has set up guidelines for the utility's management of noncore services.

The commission ordered Bangor to: establish a separate subsidiary for its "noncore" utility activities; account for the activities "below-the-line"; and limit its use of certain customer information in providing the ancillary services.

Tennessee Reviews Gas Promotion Costs

While authorizing Nashville Gas Co. to increase rates by $4.417 million, the Tennessee Regulatory Authority has modified its existing policy on the treatment of advertising expenses in gas rate cases.

The authority abandoned a past policy limiting advertising recovery to 0.5 percent of the company's gross revenues. It also ordered a 50-50 sharing between ratepayers and shareholders. It granted, however, the LDC's request for full recovery of both payroll and nonpayroll "sales promotion" costs, rejecting allegations the costs should be treated as advertising expenses.

Off Peak

Everybody's got an opinion on electric competition, and they're dying to be asked.

Last year the Colorado Public Utilities Commission opened Docket No. 96Q-313E, In the Matter of the Inquiry Into Electric Utility Industry Restructuring. Then, after weighing several options, and rather than preempt the policy discussion, the PUC mailed a 26-page questionnaire to 360 people identified as "having an interest" in electric utility issues, including investor-owned electric utilities, rural electric cooperatives, municipal utilities and others.

What it learned could fill a book ....

Bipartisan Energy Politics? 105th Congress Takes on Electric Restructuring in Earnest

"It's going to take a lost of time to understand all the pies."

It's almost spring. There's a new energy secretary(emisn't there? And at least for new electric restructuring bills in Congress. Sen. Frank H. Murkowski (R-Alaska) is chairing "workshops" on deregulation at the Energy and Natural Resources committee.

Everyone's wondering: Which bill take hold? Where will it be and how will it look by the end of the legislative session: dead, alive, or limp?

The Next Convergence: Energy, Telecommunications and Internal Infrastructure

s The technology is digital.

s The medium is cyberspace. The product is a strategic system for billing, collection and customer services (BCCS) that integrates knowledge and choice through an automated customer interface.

The impending obliteration of the business boundaries between the gas, electric and other energy industries will launch a series of convergent waves of change. Executives, regulators, legislators, investors and, naturally, consumers must ride this wave over the next 10 to 15 years.

Key Electric Restructuring Bills

Introduced in the 105th Congress

• H.R. 296, sponsored by John Shadegg (R-Ariz.). Would privatize the federal Power Marketing Administrations, splitting them into regional corporations to market and maintain generation and transmission services. Stock would be sold to recover outstanding federal debt; holding companies could invest in the corporations.

• H.R. 338, sponsored by Cliff Stearns (R-Fla.). Would repeal Section 210 of the Public Utility Regulatory Policies Act (PURPA) of 1978, but would force utilities to honor QF contracts entered prior to Jan.

Do Lifeline Programs Promote Universal Telephone Service for the Pool?

Hardly at all. In fact, they do little more than reapportion income (em a task that lies outside the FCC's mandate.

The Federal-State Joint Board on Universal Service recently proposed to expand subsidy programs for Lifeline telephone service. Under the Telecommunications Act of 1996, the Joint Board seeks to add more low-income households to the telephone network.

Will such a strategy work? Our recent findings suggest not. They indicate that simple continuance of such programs, much less expansion, is a highly questionable proposition.

Frontlines

Two months ago in this space, I interviewed a power marketer and an independent power producer who sit on the operating and engineering committees of the North American Electric Reliability Council. What did they think of NERC, a group formed to prevent large-scale power outages and made up largely of volunteers from investor-owned electric utilities? Were they treated fairly? Did they have a chance to influence policy?

In general, my two "outsiders" felt satisfied with their status on the committees, though some skepticism emerged about NERC's internal decision-making process.

People

Former Sen. Alan K. Simpson (R-Wyo.) has joined the PacifiCorp board of directors. Simpson retired from the Senate earlier this year after serving three terms. Also at PacifiCorp, Dennis Steinberg, a senior v.p., was named head of global energy sales, marketing and trading. John Bohling, another senior v.p., will direct customer service, among other activities. Mike Henderson will head a new group for international business, technology and planning.

John M. Deutch has returned as a member of the CMS Energy Corp. Board of Directors. Deutch served on the board from 1986 to 1993.