Wash. Champions Ratepayers Over Competition

The Washington Utilities and Transportation Commission (UTC) has issued an interim policy statement in its ongoing inquiry into regulatory tools to encourage the development of new resources by regulated monopoly utilities.

Md. Rejects Restrictions on Diversification

The Maryland Public Service Commission (PSC) has decided against requiring regulated utilities to obtain prior approval for nonutility activities or diversification plans. The PSC also rejected a proposal that utilities pay a royalty to consumers of regulated services to account for

intangible benefits gained by the unregulated subsidiaries. The case involved complaints regarding merchandise and appliance services provided by Baltimore Gas and Electric Co. (BG&E).

Otter Tail Decries Public Power Bids

The Natural Gas Competitiveness Act of 1995 has been introduced in the U.S. House of Representatives. Authored by Reps. Lamar S. Smith (R-TX) and John Bryant (D-TX), the bill would give independent producers an opportunity to avoid antitrust laws and join together in cooperatives to market their natural gas directly to the end user.

"Forty percent of the natural gas produced in the United States is by small, private companies with fewer than 10-15 employees," said Denise Bode, president of the Independent Petroleum Association of America.

Coalition Demands Congressional Action

The Federal Energy Regulatory Commission (FERC) plans to investigate the membership requirements set by the Mid-Continent Area Power Pool (MAPP), especially as they pertain to power marketers (Docket Nos. ER94-1529-001 and 002, and EL95-77-000).

The FERC found last December that certain MAPP membership criteria are framed in terms of traditional utility attributes (em e.g., ownership of generation and transmission facilities, interconnected operation, system load and related reserve obligations (em that entities such as power marketers do not possess.

FERC to Examine MAPP's Membership Rolls

The Federal Energy Regulatory Commission (FERC) has set for hearing a request by Koch Gateway Pipeline Co. (KGP) to charge market-based rates for firm and interruptible natural gas transportation services (Docket No. RP95-362-000). First, however, the FERC must conclude Docket No. RM95-6-000, which will delineate the circumstances under which it may approve market-based rates.

Pipeline Asks for Market-Based Rates

The Federal Energy Regulatory Commission (FERC) has set for hearing a request by Koch Gateway Pipeline Co. (KGP) to charge market-based rates for firm and interruptible natural gas transportation services (Docket No. RP95-362-000). First, however, the FERC must conclude Docket No. RM95-6-000, which will delineate the circumstances under which it may approve market-based rates.

FERC OKs Resale Price Caps in Comparability Case

The Federal Energy Regulatory Commission (FERC) has conditionally approved an open-access transmission tariff that contains a price cap in the secondary market for Kansas City Power & Light Co. (KCPL), marking the second settlement of a comparability tariff filing (Docket Nos. ER94-1045-000 et al.).

Marketing & Competing

Current utility marketing efforts focus almost entirely on large customers or "key" accounts, responding reactively to competitive threats such as self-generation, municipalization, and even geographic relocation. These threats have become all too real for many utilities. Niagara Mohawk Power Corp. has lost 15 percent of its large industrial load in the last 15 years. The recently negotiated long-term power contracts between Detroit Edison and the Big Three automakers are a conscious response to the looming threat of retail wheeling.

Perspective

Electric industry restructuring is progressing at a rapid pace. Across the country, states are moving ahead to encourage retail competition. Two states have allowed retail wheeling experiments (Michigan and New Hampshire), utilities are proposing them, and over 20 states are studying the issue. Back in Washington, Congress is examining legislation to amend the Public Utility Holding Company Act (PUHCA).