Order 888 Petitions Strong on Stranded Costs

About 90 parties have filed petitions seeking changes to Order 888. Claiming "errors," the National Association of Regulatory Utility Commissioners (NARUC) asked the Federal Energy Regulatory Commission (FERC) to reverse its assertion of:

s Jurisdiction over unbundled retail transmission services

s "Primary" authority over retail stranded-cost recovery when retail consumers convert to wholesale

s "Backstop" authority to provide stranded-cost recovery when an end user changes power suppliers under a state-established retail wheeling system.

First Nonjurisdictional Utility Uses Order 888 "Safe-Harbor"

The Federal Energy Regulatory Commission (FERC) on May 29 found that a nonjurisdictional utility's voluntary open-access tariff, with certain modifications, would meet the electric transmission comparability standards established by Order 888. In the first case of its kind, the South Carolina Public Service Authority (SCPSA) has agreed to satisfy the reciprocity requirement that it offer nondiscriminatory transmission services to obtain open-access service from public utilities (Docket No. NJ96-1-000).

SCPSA submitted the open-access tariff before Order 888 came out.

Perspective

Professor Peter Navarro, who teaches economics and public policy at the University of California at Irvine, writes in the Harvard Business Review (January-February 1996) that "[t]he deregulation of the electric utility industry represents an important opportunity to enhance the country's competitiveness and improve the standard of living for its citizens. ...

PP&L Resources Seeks Piece of SWEB

Power Markets Development Co., a subsidiary of PP&L Resources, Inc., is negotiating to acquire a minority interest in British electric distribution company South Western Electricity Board (SWEB). It has submitted a proposal to purchase an interest in Southern Investments-UK, the holding company for SWEB, from Southern Electric International (SEI), which acquired SWEB last fall. Should the purchase go through, SEI intends to maintain majority ownership and management control of SWEB. t

Lori A. Burkhart is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.

KCP&L, UtiliCorp Fight Hostile Takeover

Kansas City Power & Light Co. (KCPL) and UtiliCorp United Inc. (UU), which announced plans to merge on January 22, have amended their merger agreement in response to a hostile takeover attempt by Western Resources, Inc. The revised terms create a new KCPL subsidiary, which would be merged into UU. The resulting company would then be merged with KCPL to form the combined company. UU shareholders would receive one share in the merged company for each UU share held. KCPL shareholders would continue to hold their existing KCPL shares.

IPP Fights Utility Curtailment

A federal judge has dismissed an antitrust lawsuit brought against Pennsylvania Power & Light Co. (PPL) in 1995 by Schuylkill Energy Resources, Inc. (SER), an independent power producer. SER alleged that PPL's curtailment of electrical output from SER during "minimum generation emergencies" on the regional power pool violated federal antitrust laws.

[A minimum generation emergency is declared by the pool when low amounts of electricity are being used by customers.

Puget Power's Plans Depend on Merger

Puget Sound Power & Light Co. (PSPL) has asked the Washington Utilities and Transportation Commission (UTC) to approve a plan that would allow large customers to access electricity at market cost, and all customers to choose their electric suppliers within five years. The proposal is contingent upon approval of PSPL's proposed merger with Washington Energy Co.

Keneteck Windpower Files Chapter 11

Kenetech Windpower (KW), a subsidiary of Kenetech Corp., on May 29 filed a voluntary petition of reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of California. Parent corporation Kenetech does not intend to seek bankruptcy relief, nor cause any of its subsidiaries not directly engaged in the windpower business to seek such relief.

Joules

The United States Telephone Association has called for more voluntary interconnection agreements between telecom companies, claiming that the resulting competition will bring consumers more choices. USTA cited more than 50 signed agreements with companies that want to connect to the local network, and nearly 500 ongoing negotiations.

The Federal Energy Regulatory Commission has approved the Gas Research Institute's request for a 20-percent cut in its 1996 research, development, and commercialization budget.

People

William A. Fox was named president of The Peoples Natural Gas Co. and Hope Gas, Inc. (em both subsidiaries of Consolidated Natural Gas Co. Fox comes from Virginia Natural Gas, another subsidiary. Succeeding him is Jerry L. Causey, VNG's operations v.p. Francis J. Corbett, formerly g.m. of VNG's northern division office, steps into Causey's post. Jose M. Simon was made controller at the corporate office. Joseph R.