Ohio Edison Company and Centerior Energy Corp. announced an agreement September 17 on a tax-free, stock-for-stock merger to form a new holding company, FirstEnergy Corp., worth about $4.8 billion, based on stock prices that closed several days earlier.

The news came a month after two other merger deals were announced in mid-August: 1) Atlantic Energy, Inc. and Delmarva Power & Light Co. ($2.2 billion), and 2) Houston Industries Inc. and NorAm Energy Corp. ($3.8 billion). NorAm is the nation's third-largest U.S. natural gas utility.

The California Public Utilities Commission (CPUC) has approved loan guarantees of up to $250 million to fund development of computer hardware and software to help the electric industry establish the independent system operator (ISO) and the Power Exchange (PX), both key components of the CPUC's proposed restructuring plan.

Pacific Gas & Electric Co. and Southern California Edison Co. each had asked for $112.5 million in loan guarantees; San Diego Gas & Electric Co. had asked for $25 million.

A 400-page report by Virginia State Corporation Commission staff concludes that Virginia's best interest will be served by a slow and carefully analyzed move toward electric utility competition, rather than by immediate, massive restructuring.

Rhode Island Gov. Lincoln Almond has signed the state's new legislation on electric restructuring, known as "The Utility Restructuring Act of 1996" (Public Law Chapter 316), which mandates customer choice by July 1, 1998, or sooner if neighboring states offer retail access before that time.

The law authorizes a 2.8-cent-per-kilowatt-hour stranded-cost surcharge, but allows compensation only for those assets that the Rhode Island Public Utilities Commission (PUC) deems eligible for recovery in prior rate cases or settlements.

Niagara Mohawk Power Corp. (NiMo) has offered to terminate 44 contracts, constituting 90 percent of electricity bought from independent power producers (IPPs), in exchange for a combination of cash and securities.

NiMo claimed the move would allow implementation of its PowerChoice proposal, which would permit customers to choose their electric supplier. The plan calls for NiMo to create a separate, nonnuclear generating company. Although details remain confidential, NiMo chairman and CEO William E.

Ralph R. Mabey, trustee in the Chapter 11 bankruptcy proceedings of Cajun Electric Power Co-op., has entered into an amended asset-purchase agreement with Louisiana Generating LLC for the purchase of Cajun's nonnuclear assets. Louisiana Generating LLC is the joint-venture affiliate of NRG Energy, Inc. and Zeigler Coal Holding Co.

The NRG/Zeigler bid was selected in April, but on July 15, the bankruptcy court rejected the plan's buyer-protection provisions.

The Office of the Ohio Consumers' Counsel has gone on record at the Ohio Public Utilities Commission (PUC) as opposing any application by Cincinnati Bell Telephone Co. to amend its present alternative regulation plan to set rates using a price cap tied to the consumer price index, and to deaverage rates.

The Consumers' Counsel claims that the amendment must be considered as a new plan due to the substantive changes it proposes. It adds that, if enacted, the changes would impose rate hikes and discourage consumer choice for local calling.

In August, the Federal Communications Commission (FCC) issued rules to show how new competitors can enter the local markets for telecommunications (em forever relegating local telephone monopolies to that switchboard in the sky.

There's more to meeting marketing challenges than first meets the eye.

Imagine you've just taken over as chief executive officer (CEO) of a $1-billion gas utility in a major metropolitan market.

Sec. O'Leary says "strategic alignment" is trimming the budget;

GAO remains unsure whether Department is "truly committed."

Department of Energy (DOE) officials and like-minded politicians joined to defend the agency against Senate and House bills that would dismantle the department (em and its $17-billion annual price tag.

On September 4, the Senate Committee on Energy and Natural Resources conducted hearings on S. 1678, The Department of Energy Abolishment Act.