Texas Utilities Electric Co. and Gulf States Utilities are looking to an April 13 Texas Supreme Court decision (involving GTE-Southwest) that says the state PUC need not employ the actual taxes paid method in setting utility rates. Gulf States will now amend its appeal of a March 20 Texas PUC order forcing a $52.9-million rate reduction, which had included a $25.8-million actual taxes paid component. Texas Utilities had put its faith in legislative relief, but saw its hopes dashed in late April when a Texas state senate committee defeated a proposal to take up the matter.

The Virginia commission on April 20 authorized Virginia Electric and Power Co. (VP) to implement a five-year, experimental real-time pricing rate (RTP), but denied a proposal to custom-build dispersed generating facilities at customer sites.

The RTP will allow VP to set rates for large industrial customers (over 10,000 Kw) based in part on the actual hourly cost of generating electricity (Case No. PUE940080). The pilot program allows VP to experiment with market-based pricing by offering industrial users the opportunity to directly control their energy costs.

On May 11 in the U.S. District Court for the Northern District of New York, Niagara Mohawk Power Corp. (NMP) filed suit against the Federal Energy Regulatory Commission (FERC) and the New York Public Service Commission (PSC), seeking relief from what it terms "mandated, above-market electricity purchases" from unregulated generators.

After losing its battle to punish North Carolina for not moving quickly enough to site a low-level radioactive waste disposal facility, Gov. David Beasley (R) of South Carolina has threatened to pull out of the Southeast Compact.

In April, Beasley had asked the Southeast Compact Commission for permission to reopen the Barnwell disposal facility to generators in every state except North Carolina.

John Huey (Fortune, Feb. 21, 1994) suggests that some corporate leaders resemble candidates running for office. Cynically, this conjures an image of the slick campaigner (em a blue suit, a thick head of hair, makeup artists, acting class, and speech coaches. Yet, Mr. Huey raises an issue that cannot be ignored. How can public utilities learn to communicate better?

I've worked as a communications director at a major investor-owned electric company.

The issue of the day is what to do with the Public Utility Regulatory Policies Act of 1978 (PURPA). Whether the act will be repealed or merely revised is open to debate, but the consensus is that changes are forthcoming.

Ever since the Federal Energy Regulatory Commission (FERC) issued its February order finding that the California commission had violated PURPA by requiring Southern California Edison Co. and San Diego Gas and Electric Co.

Federal Energy Regulatory Commission (FERC) administrative law judge Jerome Nelson has found the proposed merger between Central and South West Corp. (CSW) and the bankrupt El Paso Electric Co. (EPE) consistent with the public interest (Docket Nos. EC94-7-000 and ER94-898-000). However, Judge Nelson recommended that approval be subject to a FERC decision on a number of comparability issues. (The FERC had issued an earlier opinion imposing comparability as part of the merger deal, but excepting ERCOT members.

Sithe/Independence Power Partners, L.P., an independent power producer (IPP), has filed a petition at the Federal Energy Regulatory Commission (FERC) alleging that Niagara Mohawk Power Corp. (NMP) has been overcharging for electric transmission. Sithe believes NMP has been calculating transmission losses on an incremental basis; FERC policy requires that transmission losses be calculated on an average basis.

Regulation of the United Kingdom's 12 regional electricity distribution companies (RECs) has sought to promote efficiency through the use of price caps that are supposed to remain in place for five years without regulatory intervention. The benefits of cost reductions between reviews accrue to shareholders no matter how much earnings might rise. The idea was to provide more incentive than if earnings were subject to review whenever they exceed some specified level.

Productivity has increased enormously under this system.

(TRC) test has become the dominant method of comparing the costs and benefits of demand-side management (DSM) programs. Yet the TRC test fails to recognize the negative rate impacts from reduced kilowatt-hour consumption. DSM advocates argue that more extensive DSM programs will compensate for this flaw. If all customers have an opportunity to participate in a DSM program, they claim, customers' total bills will fall in spite of rising rates that pay for the DSM investments.