3) protects Long Island residents from any property tax hikes, and 4) increases competition.

Is Too! Is Not!

In the August 1995 Mailbag, Mr. Michael Yokell claims our May 15, 1995, article ("It Ain't in There: The Cost of Capital Does Not Compensate for Stranded-cost Risk") "is simply wrong" and "nonsensical on its face" because we fail to distinguish between the cost of capital before and after the stranded-cost issue arose.

In fact, it is Mr.

What's in a Name?

Charles Studness's article "CPUC Chooses Reregulation over Deregulation" (Financial News, July 15, 1995) reminds me of Humpty Dumpty's scornful remark in Lewis Carroll's Through the Looking Glass: "When I use a word, it means what I choose it to mean (em nothing more nor less."

When Studness discusses "deregulation," it is clearly what he chooses it to mean (em not what the California Public Utilities Commission (CPUC) proposes in its May 24 majority decision on deregulating the electric utility industry.

Dan W. Reicher was named acting assistant secretary for policy at the U.S. Department of Energy. Reicher has served as deputy chief of staff and counselor to Secretary of Energy Hazel R. O'Leary since 1993 and was a member of the Clinton-Gore transition team. Reicher replaces Jack Riggs, who left to take a senior position at the Aspen Institute.PECO Energy Co. selected William H. Smith III as v.p. and group executive of its new Telecommunications Group. Stepping into his seat as nuclear support v.p. is Drew Fetters.

James H.

Suppose you want to reduce emissions

of carbon dioxide to lessen the chance

of global warming. Should you (a) prohibit coal burning in electric power plants, (b) encourage coal use for power generation, or (c) force electric generators to pay an "externality" surcharge to reflect the cost of CO2 emissions?Here's another one. You are an independent power producer.

Technological advances in electric generation and telecommunications make utility competition both possible and inevitable. These economic forces will eventually break down the regulatory structure of the electric industry. However, public policy should play a crucial role in molding and nurturing competition.In recent months, regulators in a majority of the states have opened proceedings to study electric competition.

The decision to outsource, however, now goes beyond cost-cutting considerations. Companies are just as likely to turn to outsourcing when they want to concentrate on new business opportunities or dramatically change their overall structure.

IT has become strategic. And important. So important that utility companies are seeking outside expertise to help them leverage technology to conduct business more efficiently, help grow revenues, and hone their edge in the new competitive world. Time has become an unaffordable luxury.

The challenges facing the information technology (IT) industry into the next century are significant. Yet so are the opportunities.

Nathan Rothschild knew before anyone else that Napoleon would lose the Battle of Waterloo in 1815. With this advance knowledge he dumped his British-backed government securities on the market, making it appear as if he had heard the opposite outcome. His competing merchant bankers, following Rothschild's move, also sold their securities. After Rothschild saw the market bottom out, he repurchased every piece of paper he could lay his hands on (em at fire sale prices.