Atmos Energy Corp. and United Cities Gas Co. have announced an agreement to merge in a share-for-share exchange of common stock.

Atmos distributes natural gas to about 673,000 customers through its operating subsidiaries, Energas Co., Greeley Gas Co., Trans Louisiana Gas Co., and Western Kentucky Gas Co. United Cities distributes gas to about 310,000 customers, operates gas storage facilities, and distributes propane to 25,000 customers.

R.J. Rudden Associates, Inc. (RJRA) estimates U.S. nuclear plant stranded costs at $65.5 billion ($1994) if electric industry restructuring is fully implemented in 1997.

The firm's analysis relied on historic cost and performance data for each facility, and on RJRA projections of regional competitive prices for capacity and energy. RJRA said a slower restructuring would reduce the investment at risk to between $46.3 billion (year 2000) and $23.2 billion (year 2010).

The Maine Public Utilities Commission (PUC) has released for comment its Draft Plan on Electric Industry Restructuring, which would allow all retail customers to choose their generation supplier beginning in January 2000. The draft permits customers to aggregate, and does not require reciprocity based on retail access in other states or Canada.

Investor-owned utilities (IOUs) would have to structurally separate generation by January 2000, and divest all generation assets by January 2006.

The U.S. Department of Energy (DOE), in a report analyzing the July power outage in

14 Western states, notes that New England is "challenged" by the shutdown of 3,000 Mw of nuclear capacity in Connecticut. The mid-Atlantic will be likewise challenged over the coming years by delay in the construction of a 765,000-volt transmission line between West Virginia and Virginia.

UtiliCorp United amended an electric-supply contract with Public Service Co. of Colorado to reduce electric costs for 78,000 electric customers by as much as $1 million a year.

Chairman Miller's prediction that consumers and not producers will set future electricity prices is correct, assuming a competitive market. His observation (em that "states that move decisively to a competitive environment and that clear their decks of the debris of electricity companies' stranded costs as quickly as possible will be the winners" (em is equally correct. But estimates of stranded investments range from $20 to $500 billion. Who will pay to clear those "decks"?

Charles Studness is not the type of person I would like to loan money to. I say this because if interest rates dropped in the future he would believe he was now entitled to borrow at the lower rates and not pay me what was owed.

In his latest diatribe against stranded-cost recovery ("Stranded-cost Recovery: It's Un-American," Financial News, July 15, 1996, p. 43), Studness tells us that recovery of stranded costs will keep Americans from purchasing electricity at the competitive price.

It certainly will; however, first all debts must be paid.

I am shocked that a respected and learned analyst of the utility industry like Charles Studness would espouse a position that stranded-cost recovery is somehow "un-American" ("Stranded-cost Recovery: It's Un-American," Financial News, July 15, 1996, p. 43).

Contrary to the claims of Mr. Studness, recovery of stranded cost is a fundamental right protected by the U.S. Constitution.

Attorney Edward L. Flippen insists it "doesn't take an economist to figure out" what will happen to electricity prices in a restructured industry that provides for open access and retail wheeling ("Radical Restructuring? Not in My State," Perspective, August 1996, p. 11).

Forgoing an economist, Flippen predicts that electricity rates will reach a national equilibrium point substantially higher than rates currently prevailing in Virginia but below rates in California.

I was surprised that the news item "N.Y. Issues Electric Restructuring Plan" (Courts and Commissions, 7/15/96, p. 45) neglected to mention one of the most significant aspects of the restructuring order at the New York Public Service Commission (PSC). In its May 20th order, it adopted the goal of wholesale competition by early 1997, and retail access by early 1998.

As the PSC stated: "A main benefit of setting a timetable is that it would give parties a goal and expectation that should move the process along.

Ronald L. Adams, an executive from Transcontinental Gas Pipeline, was named president of CNG Transmission Corp. He replaces L.J. Timms, Jr., who retired.

Lee Elder was hired by GE Nuclear Energy as manager of market development. Elder was g.m. of nuclear marketing and technology for Black & Veatch and started a joint venture between the two companies to service boiling water reactors.

The Oklahoma Corporation Commission has hired Richard L. Heck, a former U.S.