Commission

N.C. Tightens Rules on Utility Promotional Programs

The North Carolina Utilities Commission (NCUC) has adopted a new set of guidelines to help settle disputes between electric and gas utilities over utility-sponsored promotional programs. It also established a rule for evaluating proposed incentive programs, approving a new food-service rate program designed by Duke Power Co. to encourage the installation of electric food preparation equipment in commercial kitchens.

Ohio Proposes Rules for LEC Competition

The Ohio Public Utilities Commission (PUC) has issued a proposed framework for competition in the local exchange telephone market. In a separate opinion, PUC chairman Craig A. Glazer noted that new market entrants in the state appear to be dominated by Time Warner.

Illinois Court Rejects Electric Anti-bypass Rates

An Illinois Appellate Court has reversed a ruling by the Illinois Commerce Commission (ICC) that had allowed Commonwealth Edison Co. to enter negotiated rate contracts with up to 25 large general-service customers to retain existing load. The ICC had ruled that the antibypass tariff would not conflict with state laws requiring filing and publication of utility rates, because it must contain a description of the pricing and service parameters used in negotiating the individual contracts.

VA High Court Upholds LEC Price-cap Plan

The Virginia Supreme Court has upheld the state's decision to implement a price-cap

alternative regulation plan for Bell Atlantic-Virginia, Inc., a telecommunications local exchange carrier (LEC). Rejecting an appeal brought by the American Association of Retired Persons and other consumer groups, the court concluded that the Virginia State Corporation Commission had adequate support for its decision to replace existing ratemaking methods.

Cost Shift to Residential Gas Users Uphold

The Arkansas Court of Appeals has upheld a decision by state regulators permitting Arkansas Louisiana Gas Co., a natural gas local distribution company, to allocate the total amount of a recent rate increase to residential users. According to the Arkansas Public Service Commission (PSC), applying the entire $4.9-million increase to residential users was an appropriate means of preventing system bypass by larger customers, consistent with prior efforts at removing interclass subsidies. (See, Re Arkansas Louisiana Gas Co., a division of Arkla, Inc., 150 PUR4th 333 (Ark.P.S.C.

N.Y. High Court Affirms Royalty Revenue Adjustments

The New York Court of Appeals, affirming a lower court ruling (Rochester Telephone Corp. et al. v. New York Public Service Commission, 201 A.D.2d 31, 155 PUR4th 511 (N.Y.App.Div.)), has upheld the authority of state regulators to use a "royalty" to reduce rates for services provided by local exchange carriers (LECs). The royalty was designed by the New York Public Service Commission (PSC) to compensate ratepayers for transfers of

intangible assets to unregulated subsidiaries.

Idaho Project Sale of Local Exchanges

Diverging from the position taken by regulators in other states in the region, the Idaho Public Utilities Commission (PUC) has rejected proposals by U S WEST Communications, Inc., a

telephone local exchange carrier, to sell certain local

exchanges to independent telephone companies. It approved, however, a proposal to sell one of U S WEST's exchanges to a telephone cooperative association. Re U S WEST Communications Inc., Case Nos. PRJ-T-94-1; USW-S-94-4, Order No. 26198, Oct. 18, 1995 (Idaho P.U.C.).

Electric M&A: A Regulators Guide

In a little over a year, the electric utility industry has seen six significant mergers.1 This trend toward consolidation most likely will increase as the industry becomes more competitive.

Coalition Seeks DOE Action on Nuclear Waste

The U.S. Department of Energy (DOE) has settled its lawsuit with the State of Idaho, clearing the way to resume shipments of radioactive waste from Navy ships to a DOE storage site in Idaho. DOE will pay Idaho $350 million and has promised to remove the Navy's spent fuel from the Idaho storage site by 2035 or face a $60,000-a-day penalty.