NGV Program Gets Rate Support in WVA

The West Virginia Public Service Commission (PSC) has approved a request by the state's natural gas local distribution companies (LDCs) to extend a statewide natural gas vehicle (NGV) program first approved in 1992.

Palo Verde Disallowance Upheld

A Texas Court of Appeals in Austin has turned back an appeal by El Paso Electric Co. (EPE) challenging a state commission ruling that disallowed rate recovery of the utility's investment in the Palo Verde Unit 3 nuclear generating plant as excess capacity. It rejected the utility's claim that use of the plant for base-load and offsystem wholesales warranted cost recovery.

The Palo Verde disallowance had come in a 1992 commission rate order.

Executive Compensation Alerts Regulators

Does competition justify higher salaries for utility executives? Some regulators have suggested the opposite. Others argue that ratepayers must benefit directly from any incentives offered to utility managers.

The Vermont Public Service Board (PSB) recently forced stockholders to pay a share of executive compensation costs for two utilities (em Green Mountain Power Co. and Central Vermont Public Service Corp. (em that exhibited higher-than-average executive compensation, and capped compensation for rate cases.

The Folly of PURPA RepealJerry R. Bloom and Joseph M. Karp

One need only reflect upon the primary sponsors of current efforts to repeal section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA) to begin to understand the folly of these efforts for the nation. The sponsors do not represent electricity ratepayers, who are claimed to be overpaying billions of dollars as a result of PURPA.

FERC Sticks to CA PURPA Decision

The Federal Energy Regulatory Commission (FERC) has upheld its February 22 ruling that the California Public Utilities Commission (CPUC) violated federal law by not considering all electric power sources in determining the avoided costs of electric utilities (Docket Nos. EL95-16-001 and EL95-19-001). A unanimous FERC had found the CPUC's Biennial Resource Plan Update auction in violation of the Public Utility Regulatory Policies Act (PURPA).

TVA's Crowell to Resist GAO Pressure

Tennessee Valley Authority (TVA) chairman Craven Crowell says he will resist General Accounting Office (GAO) pressure to raise TVA rates. According to Crowell, a forthcoming GAO report criticizes TVA for not raising rates to reduce debt, and suggests privatization. "Everyone recognizes that TVA's debt is large, but the size of the debt is not as important as our ability to manage it," Crowell maintains, noting that a recent study by utility consulting firm Palmer Bellevue concludes that TVA can remain competitive by effectively managing the debt.

NRC Amends Licensing Renewal Process

The Nuclear Regulatory Commission (NRC) has amended its regulations on nuclear plant license renewal to provide a "more stable and predictable regulatory process." The amended regulations will enhance the credibility of the NRC's existing regulatory oversight process and licensee maintenance programs by narrowing the number of systems, structures, and components that must be reviewed during the renewal process. Operating licenses are granted for periods up to 40 years, and may be renewed for 20 more if NRC requirements are met.

FERC Oks $100M Hydro Settlement

The Federal Energy Regulatory Commmission (FERC) has approved a comprehensive settlement that issues a new license allowing the Seattle City Light Co. to continue operating the 689-megawatt Skagit River hydroelectric project. In exchange, the utility will spend $100 million on protecting and enhancing the natural and cultural resources around the plant (Project No. 553-005, Docket No. EL78-36-000).

WRTA First to get FERC Final Approval

The Federal Energy Regulatory Commission (FERC) has granted final approval to the Western Regional Transmission Association (WRTA), making it the first regional transmission group (RTG) approved under the FERC's 1993 policy statement (Docket Nos. ER94-1288-003 and

ER94-1288-004).

WRTA had received conditional approval last October, but members were directed to provide comparable electric transmission service and file a single, regional transmission plan.

FERC Orders Power Pools to Transmit

For the first time, the Federal Energy Regulatory Commission (FERC) has directed a power pool, the Pennsylvania-New Jersey-Maryland (PJM) Power Pool, to provide electric transmission services to an electric utility, Duquesne Light Co. (Docket Nos. TX94-10-000 and TX94-8-000). It gave PJM 70 days to negotiate rates and terms with Duquesne, which had asked for transmission service to market excess capacity and energy. The FERC ordered the 11 members of the pool to negotiate jointly with Duquesne, and to charge comparable rates.