Liberalisation of the electricity markets in the UK and Scandinavia has driven merger activity in these territories. This was evident in 1996 with U.S. companies taking over MEB, East Midlands Electricity and Northern Electric, with London Electricity likely to follow in early 1997.
The North Carolina Utilities Commission has permitted the state's major investor-owned electric utilities to suspend their
existing avoided-cost rate offers for long-term power purchases from qualifying cogeneration facilities, pending regulatory review.
The commission said it would also review a proposal by North Carolina Power Co. to reduce the eligibility threshold for the avoided-cost rates from the current capacity level of 5,000 kilowatts, to only 100 kW.
Consumers Would Overpay.
A New York appellate court has rejected claims by sellers of a residential property located near a high-voltage transmission line in Westchester county that the utility owner of the line should pay compensation for a drop in property value allegedly due to public fears about electromagnetic fields.
The case turned on the court's interpretation of constitutional "taking" rules and the legal doctrine of "inverse condemnation.
"Invasion" Claimed. The sellers had sued Consolidated Edison Co.
With doubts resolved over its legal authority, the Pennsylvania Public Utility Commission has issued "final-form" rules (but subject to legislative review) that allow an "operating-ratio" method as an alternate form of rate regulation for small water and wastewater utilities, many of which now face severe financial difficulties.
For added financial aid, the new rules also allow water utilities to create an emergency maintenance and operation fund as well as a reserve account, with both funded as "customer contributions in aid of construction."
Revenues Eaten Up.
The Oregon Public Utility Commission has approved a settlement agreement allowing Portland General Electric Co.
The New Jersey Board of Public Utilities has rejected a request by a trade group representing heating, cooling, and appliance repair and installation vendors to direct Public Service Electric and Gas Co.
The Ohio Public Utilities Commission has adopted guidelines for mandatory pilot programs by electric utilities to aggregate customer loads.
The Massachusetts Department of Public Utilities has authorized the Boston Gas Co. to implement a performance-based rate plan that will include a price cap for monopoly services, using the "GDP-PI" measure of inflation, minus a productivity offset of 2 percent.
It also told Boston Gas to cut rates by $2.897 million but allowed the company to go forward on an interim basis with an plan to unbundle services and require customers or marketers to take manadatory assignment of a pro rata share of the company's upstream pipeline and storage capacity contracts.
Sound bites from state and federal regulators.
Residential Weatherization. Idaho allows Utah Power & Light Co. to discontinue its demand-side management program for residential weatherization, calling it "apparently no longer of much value." to customers. Case No. UPL-E-96-6, Order No. 26747, Dec. 31, 1996 (Idaho P.U.C.).
Real-time Pricing. Montana Power Co.
To predict the Clinton Administration's next step is foolhardy. And when it comes to the first federal restructuring bill, it's riskier still to rely on drafts that apparently were leaked to gauge reactions of the energy industry and media.
"There have been a gazillion versions of the bill which have been prepared," says a Department of Energy official.