either through the legislature, the utility commission, informal working groups, or some combination of these (em to consider issues such as retail wheeling, unbundled utility structures, and alternative rate regulation.1 California's "Blue Book" hearings have drawn the most attention, but significant efforts are also underway elsewhere. Although each state is approaching the issue in its own way, successful industry restructuring will ultimately require coordination across state lines.

Metropolitan Edison Co. (ME) and Pennsylvania Electric Co. (PE), subsidiaries of General Public Utilities Corp. (GPU), have asked the Federal Energy Regulatory Commission (FERC) for rehearing on parts of its July 6 order, which the two companies had challenged under the Public Utility Regulatory Policies Act in Pennsylvania (Docket No. EL95-41-000).

Specifically, the utilities had challenged the Pennsylvania Public Utility Commission's (PUC's) method of using a coal plant proxy to calculate a default level of avoided costs.

A recent Nuclear Energy Institute (NEI) report, Sharpening the Competitive Edge, finds that, by focusing on improved economic performance and undertaking a range of individual and industry initiatives, utilities reduced nuclear plant operating and maintenance (O&M) expenses by 8 percent between 1994 and 1995.

The American Gas Association (A.G.A.) has issued A Strategic Guide to IRP and DSM for Natural Gas Companies, prepared by Hampton Strategies, Inc. Because the evolution of IRP and DSM initiatives for electric and gas companies will be greatly affected by increased competition, the report contends, natural gas companies need to be familiar with issues and practices surrounding DSM cost recovery and profitability incentives.

For almost a decade now, the Federal Energy Regulatory Commission (FERC) has pursued the goal of promoting competition in bulk-power markets, focusing on access to transmission as its primary tool to achieve that end. This trend first emerged in the 1987 PacifiCorp merger case. It gained momentum with the strong message sent by the Congress in the Energy Policy Act of 1992 (EPAct).

investor-owned electrics at $50 to $300 billion, depending on market-price assumptions. The most likely scenario would produce about $135 billion in stranded costs, compared to present total industry equity of about $165 billion and total assets of $570 billion.

The New York Mercantile Exchange (NYMEX) and EnerSoft Corp., a New York State Electric & Gas subsidiary, have launched Channel 4, the only electronic bulletin board (EBB) that allows companies to trade natural gas and pipeline capacity in the United States and Canada via a single system. Channel 4 is also the only system connected to over 40 pipelines, which it sweeps for information.

Cajun Electric Cooperative has lost its request with the Fifth Circuit Court of Appeals for an emergency stay of the appointment of a trustee in bankruptcy. Cajun had claimed a conflict of interest because the proposed trustee, Ralph Maybe, belongs to the Salt Lake City law office of LeBoeuf, Lamb, Greene & McRae, which worked for Entergy and Gulf States Utilities Co. (GSU) on matters concerning the River Bend nuclear plant. Entergy and GSU have been involved in a $2-billion lawsuit with Cajun over the plant since 1989.

U.S.

Puget Sound Power & Light (PSPL) has protested Bonneville Power Administration's (BPA's) plan to negotiate industrial power contracts with its own direct services industries, giving them rate cuts without first taking part in full public hearings. Gary Swofford, PSPL senior vice president for customer operations, said in August that BPA planned to have signed contracts in place by September, when consumer hearings are scheduled.