Every year, Public Utilities Fortnightly holds a forum electric utility executives. And another for gas utility executives. And another for state regulators.
This year we decided to ask utility customers what they think.DuPont, the country's number one chemical company, operates in 70 countries. It is, perhaps, best known for its Teflon products, but it also makes refrigerants, pigments, fibers (Lycra), nylon resins, electronics, medical products, and many other products.
Theory and experience teach that commercial market research
can be of very poor quality. What does that mean
for regulators and utility managers?
How can regulators and utility managers know whether and to what extent to trust commercially prepared market research?
At the November 1, 1995, meeting of the Natural Gas Roundtable in Washington, DC, a representative of the American Gas Association (A.G.A.) launched a blistering attack against the Energy Information Agency (EIA) for its forecasts of natural gas prices. In essence, A.G.A. complains that EIA's long-term forecasts have proven unreasonably high, softening enthusiam for gas-burning equipment (from turbines to gas water heaters).
As quoted by Gas Daily, A.G.A.'s representative said: "The bottom line is whose numbers are right.
The North Carolina Utilities Commission (NCUC) has adopted a new set of guidelines to help settle disputes between electric and gas utilities over utility-sponsored promotional programs. It also established a rule for evaluating proposed incentive programs, approving a new food-service rate program designed by Duke Power Co. to encourage the installation of electric food preparation equipment in commercial kitchens.
The Ohio Public Utilities Commission (PUC) has issued a proposed framework for competition in the local exchange telephone market. In a separate opinion, PUC chairman Craig A. Glazer noted that new market entrants in the state appear to be dominated by Time Warner.
An Illinois Appellate Court has reversed a ruling by the Illinois Commerce Commission (ICC) that had allowed Commonwealth Edison Co. to enter negotiated rate contracts with up to 25 large general-service customers to retain existing load. The ICC had ruled that the antibypass tariff would not conflict with state laws requiring filing and publication of utility rates, because it must contain a description of the pricing and service parameters used in negotiating the individual contracts.
The Virginia Supreme Court has upheld the state's decision to implement a price-cap
alternative regulation plan for Bell Atlantic-Virginia, Inc., a telecommunications local exchange carrier (LEC). Rejecting an appeal brought by the American Association of Retired Persons and other consumer groups, the court concluded that the Virginia State Corporation Commission had adequate support for its decision to replace existing ratemaking methods.
The New York Court of Appeals, affirming a lower court ruling (Rochester Telephone Corp. et al. v. New York Public Service Commission, 201 A.D.2d 31, 155 PUR4th 511 (N.Y.App.Div.)), has upheld the authority of state regulators to use a "royalty" to reduce rates for services provided by local exchange carriers (LECs). The royalty was designed by the New York Public Service Commission (PSC) to compensate ratepayers for transfers of
intangible assets to unregulated subsidiaries.
Diverging from the position taken by regulators in other states in the region, the Idaho Public Utilities Commission (PUC) has rejected proposals by U S WEST Communications, Inc., a
telephone local exchange carrier, to sell certain local
exchanges to independent telephone companies. It approved, however, a proposal to sell one of U S WEST's exchanges to a telephone cooperative association. Re U S WEST Communications Inc., Case Nos. PRJ-T-94-1; USW-S-94-4, Order No. 26198, Oct. 18, 1995 (Idaho P.U.C.).