Public Service Co. of Colorado (PSCC) and IBM have announced a strategic alliance. IBM's subsidiary, Integrated Systems Solutions Corp. (ISSC), and a new PSCC subsidiary, e prime, will develop and deliver new information technology applications to improve utility customer service. E prime's first project will be to help IBM develop a natural gas procurement strategy to reduce energy costs and improve the quality and reliability of its energy services. ISSC will manage most of PSCC's information technology systems and network infrastructure.

Moody's Investors Service has placed the Baa2 long-term credit rating of Houston Industries Inc. (HII), parent company of Houston Lighting & Power (HL&P), under review for possible upgrade. The main catalyst is HII's January agreement to sell its cable television assets valued at $2.24 billion in exchange for cash and securities to Time Warner Inc. Another factor is HL&P recent settlement with the city of Houston in its rate proceeding. Although it includes a $367-million annual rate reduction, Moody's says the settlement will have "minimal impact" on the utility's credit rating.

To further their pending merger, the Williams Companies Inc. has offered to reduce Transco Energy Co.'s cost of capital via a $950-million shot in the arm. The merger will create the second biggest U.S. pipeline company in terms of pipeline miles, but the largest in terms of gas delivered (about 4 trillion British thermal units annu-ally). The recapitalization plan, however, must first be approved by the Securities and Exchange Commission.

The Mescalero Apache Tribe has rejected a proposal by a consortium of electric utilities to create a temporary nuclear waste storage site on tribal lands in Mescalero, NM. According to Northern States Power Co. chairman James Howard, the coalition will increase its efforts via federal legislation, or its lawsuit against the Department of Energy: "While we are encouraged by recent industry legislative developments, we also are hopeful that the new spirit being expressed by the members of the 104th Congress will refocus attention on a monumental consumer problem." (em LB

The Kansas City Board of Trade has asked the Commodity Futures Trading Commission (CFTC) to approve a natural gas futures and options trading contract for a summer launch. The designated delivery point is the Permian/Waha Hub in West Texas, operated by Valero Transmission Co. Kansas City Board chairman Don Hills says the western gas futures contract is necessary because gas prices differ significantly across the country, due to seasonal weather extremes and the diverse origins of supply.

Thomas L. Fisher, president of NICOR Inc., will become CEO at the company's annual meeting on May 3. He also is expected to become chairman in December, succeeding Richard G. Cline. Fisher, 50, joined NICOR's principal subsidiary, Northern Illinois Gas Co., in 1967, became president and CEO in 1988, and has served in a number of executive positions.

PECO Energy Co. president Corbin A. McNeill, Jr. will assume the additional position of CEO at the company's April 12 annual meeting. Joseph F.

This fight is for the heart and soul of regulation everywhere. The Federal Energy Regulatory Commission (FERC) won the first round on February 22, but I think there's more to come.

The fight involves incentives for nonutility generators (NUGs). It also touches on PURPA (em the Public Utility Regulatory Policies Act of 1978 (em which guarantees a market to cogenerators or power producers (QFs) who qualify. But more important, this battle involves regulatory philosophy.

The governments of most Latin American countries have yet to establish clear policies about the future ownership of existing generation assets, but they do expect future capacity to be largely developed by the private sector. This has created friction in some countries between governments, which are eager to limit the role of the state in electric supply, and national utilities, which feel threatened and continue preparing traditional expansion plans.

After 40 years of wandering in the wilderness as a minority party, House Republicans are ready to slash and burn what they see as a bloated federal bureaucracy. The next two years will demonstrate just how powerful the legislative branch can be when both House and Senate are controlled by a strong-willed party on a mission. Electric industry officials seem optimistic, but cautious, about this Republican revolution.

By Seabron AdamsonSeabron Adamson is senior consultant with London Economics Ltd., a consulting firm for the private sector. A native of Georgia, Mr. Adamson joined London Economics in 1992 and currently resides in the United Kingdom.

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The debate over "PoolCo" vs. bilateral contract markets is a question of market mechanism, or how transactions can be made while recognizing the realities of power systems.