Perspective

Recently I had the opportunity to testify before the Subcommittee on Energy Production and Regulation of the U.S. Senate Energy and Natural Resources Committee on legislation that would repeal the Public Utility Regulatory Policies Act (PURPA). During the course of the hearing, Sen. Bennett Johnston (D-LA) made a comment that framed perfectly the

federal-state tensions currently affecting energy regulatory policy in America.

Sen.

Otter Tail Pushes PMA Privatization Pilo

Otter Tail Power Co. (OTP) has asked to manage the operations and marketing activities of the Billings Marketing Area of the Western Area Power Administration's (WAPA) Eastern Pick-Sloan system (a multistate region). According to OTP president John MacFarlane, the proposal aims to smooth the transition to privatization.

Iowa PURPA Law Comes Under Firet

Midwest Power Systems Inc. (MPS) has asked the Federal Energy Regulatory Commission (FERC) to void the Iowa law requiring Iowa utilities to pay six cents per kilowatt-hour for electricity generated by qualifying facilities (QFs). MPS

argues that the Iowa price is more than twice what federal law imposes under a market-based rate. MPS and the three other investor-owned utilities (IOUs) in Iowa had asked the state legislature earlier this year to make the Iowa law conform to federal law, but the bill was not passed.

Illinois Joins Reform Movement

The Illinois legislature has established a committee to study reforming the electric utility industry in Illinois through competition. The Joint Committee on Electric Utility Reform will be guided by Energy Choice 2000, a proposal that would allow utilities to compete for large customers as of 2000. The Illinois Commerce Commission (ICC) would have the power to let residential and small commercial customers to select their supplier by 2006. The proposal was developed by the Coalition for Consumer Choice, which comprises various Illinois businesses as well as Illinois Power.

PSE&G Makes Innovative Emission Reduction

Public Service Electric and Gas Co. (PSE&G) and Merck & Co. have announced a trade of emission reduction credits as part of a broad initiative to develop a market-based response to combat the ozone nonattainment problems in the Northeast. PSE&G will sell a minimum of 10 and a maximum of 75 tons of nitrogen oxide (NOx) pollution reductions, called "surplus discrete emission reductions" (SDRs), to Merck in 1995. Merck will use the SDRs to comply with environmental requirements at two industrial boilers.

Texas Opens Up Local Phone Service

Texas Gov. George Bush on May 26 signed into law a comprehensive bill, H.B. 2128, that makes sweeping changes in the way the state regulates telecommunications. The bill allows competitors to provide local exchange services by obtaining a certificate of operating authority (COA) or to resell local services through a service-provider certificate of operating authority. The COA is designed for facilities-based local exchange, and requires competitors to serve customers within a 27-square-mile area within 30 days of customer request.

Wisconsin Wants More EMF Research on Farms

The Wisconsin Public Service Commission (PSC) has called for additional research on Wisconsin dairy farms to determine what impact electromagnetic fields (EMF), direct current, and ground currents may have on dairy cattle. According to the PSC, Wisconsin farmers have been noticing behavioral changes in their milking herds for some years now (em changes that affect milk production.

Coal Hauling Contract Leads to Virginia Power Refund

The Virginia Corporation Commission has approved an $8.3-million repayment by Virginia Power (VP) for excessive fuel costs resulting from a 1991 coal-hauling contract with CSX Transportation Inc. The contract became the focus of attention during a dispute last year between the utility and its corporate parent, Dominion Resources, Inc. (DRI).

Commission staff found in a January report that DRI chairman and CEO Thomas E. Capps had pressured VP into the contract, which was expected to benefit the company.

Massachusetts Calls for Retail, Wholesale Competition

Massachusetts Gov. William Weld and Lt. Gov. Paul Cellucci have filed a proposal with the Massachusetts Department of Public Utilities (DPU) that would require all Massachusetts electric utilities to develop deregulation plans by the end of 1995.

In the proposal, the Massachusetts Division of Energy Resources (DOER) asks the DPU to issue a June 16 restructuring timetable that schedules a final order around August 1.

Mailbag

Salt River Project has appointed Capitol Hill veteran Renee Eastman manager of federal affairs. Eastman previously served four years as a representative for Sun Company, the nation's largest independent oil refiner and marketer.

Peter M. Schwolsky, former executive v.p. at New Jersey Resources Corp., has joined Columbia Gas System as senior v.p. He will become chief legal officer of the corporation later this year.