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).

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.

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.

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).

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.

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.

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.

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.

The Michigan Public Service Commission (PSC) has warned Consumers Power Co., an electric utility, that the utility may only take more power from its affiliated Midland Cogeneration Venture (a qualifying cogeneration facility) through a competitively bid capacity solicitation.

The Michigan Public Service Commission (PSC) has rejected allegations that flexibly priced tariffs for electric service are unlawfully discriminatory under state law. The ruling opens the way for Consumers Power Co. to impose a new Special Competitive Services (SACS) tariff. The new SACS rate would allow Consumers to negotiate onpeak billing demand and energy charges within a range of rates for customers with a less expensive alternative energy source.