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.

Alex Henney is associated with Energy Economic Engineering Ltd. in London, and has consulted in many countries. As early as February 1987, Henney advocated competitively restructuring the electricity supply industry and incorporating a pool as a real-time spot market. He is the author of A Study of the Privatisation of the Electricity Supply Industry in England and Wales.

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Last year, the Norwegian Market Co. decided to stick with bilateral trading and a spot market.

Eugene P. Coyle works as an energy analyst for Toward Utility Rate Normalization (TURN), a consumer advocacy group in California that claims 30,000 members.

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The January mini-forum failed to discuss a key underlying assumption made by PoolCo proponents. The assumption is that price competition will really exist in tomorrow's wholesale electric market.

By Wallace Edward BrandWallace Edward Brand practices law in his own firm in Washington, DC, where he represents small electric systems.

A U.S. District Court (Eastern District, Oklahoma) has ruled that the City of Stilwell's attempted condemnation of Ozark Electric Cooperative facilities and customers within an annexed area of the city's corporate boundaries was preempted under federal law. The court found that allowing the city to "skim the cream" of the co-op's service area would frustrate the Rural Electrification Act's (REAct's) objective of providing reliable and affordable electric service to rural America.

After considering the matter in several proceedings since 1991, the Hawaii Public Utilities Commission (PUC) has decided to permit the state's utilities to include in rates the full cost of switching from cash to accrual accounting for post-retirement benefits other than pensions (PBOPs) under SFAS 106. The PUC rejected proposals to require the utilities to alter certain SFAS 106 financial reporting requirements (em for example, extending the amortization period for recovery of PBOP transition costs from 20 to 40 years.

The Ohio Public Utilities Commission (PUC) has modified its natural gas transportation guidelines for local distribution companies (LDCs) to reflect changes in the industry under FERC Order 636. The PUC said its revisions would give customers a clearer understanding of service rights and curtailment procedures under the restructuring, and reflected the fundamental principle that each gas service must be offered on a comparable basis (em whether provided under bundled or unbundled tariffs.

The Tennessee Public Service Commission (PSC) has finalized an $8.7-million rate reduction for United Telephone-Southeast, Inc. under an alternative regulation plan in place since 1991. The rate reduction is the first under the plan's three-year earnings review procedures.

The Ohio Public Utilities Commission (PUC) has approved a settlement agreement governing how National Gas & Oil Corp. will recover all pipeline transition cost charges from its customers. National, a natural gas local distribution company (LDC), will recover supply restructuring charges through both the sales tariff transition cost account (79 percent) and the transportation transition cost account (21 percent). It will recover gas cost charges from sales customers through its gas cost recovery mechanism. Re National Gas & Oil Corp. Case No. 94-1549-GA-UNC, Dec.

While permitting New Jersey Natural Gas Co., a natural gas local distribution company (LDC), to continue adjustment-clause recovery of its pipeline transition costs, the New Jersey Board of Public Utilities (BPU) has approved a "financial risk-management pilot program" designed to protect the LDC from extreme supply price volatility. According to the BPU, the program will reduce supply costs by "locking in" alternative gas-supply prices using natural gas options traded on the New York Mercantile Exchange.