Commission

N.D. Begins Incentive Regulation Exercise

The North Dakota Public Service Commission (PSC) has decided to consider different types of regulation for electric utilities and has issued a set of criteria to guide interested parties in formulating specific proposals for experimental programs. In a separate statement, however, Commissioner Leo M. Reinbold warned against making too much of the decision.

All proposals must promote increased utility efficiency and flexibility in meeting customer needs while allowing customers and shareholders to share in any benefits.

Alternative Regulation Finds Favor in Missouri

The Missouri Public Service Commission (PSC) has approved an experimental alternative regulation plan for Union Electric Co., the largest regulated electric utility in the state. The new plan is part of a stipulation and agreement that includes a $30-million one-time customer refund and a $30-million annual rate reduction. The experiment (em scheduled to run between July 1, 1995, and June 30, 1998 (em involves a sharing of company earnings between ratepayers and shareholders.

Washington Scraps Decoupling Mechanism

While approving a $58.8-million annual rate increase for Puget Sound Power & Light Co., the Washington Utilities and Transportation Commission (UTC) has also agreed to terminate its experimental periodic rate adjustment mechanism (PRAM).

NEPOOL Goes for Marketers, Brokers

The New England Power Pool (NEPOOL) has filed an amendment to its agreement with the Federal Energy Regulatory Commission (FERC), seeking to open the power pool's membership to power marketers and brokers involved in the wholesale power business. Prior to the amendment, only electric utilities with retail customers, their affiliates, and independent power producers were eligible for membership. According to Frank Sabatino, chairman of NEPOOL's executive committee, the action is a significant first step in redefining NEPOOL's role in the increasingly competitive bulk-power market.

FERC Eases Gas Reporting Burden

The Federal Energy Regulatory Commission (FERC) has issued two final rules that seek to reduce the filing burden on the natural gas industry. One simplifies the Uniform System of Accounts and the FERC's reporting requirements (Docket No. RM95-4-000). The other simplifies the filing requirements for making rate and tariff changes under Part 154 of the regulations (Docket No. RM95-3-000).

The rules recognize that most interstate pipelines now serve as transporters rather than as merchants.

Open-access Filings Climbing

The Federal Energy Regulatory Commission (FERC) has accepted seven more open-access electric transmission tariffs, bringing the total to 34. Another six are pending. The new tariffs were submitted by Jersey Central Power & Light Co.,

Mid-American Energy Co., Illinois Power Co., Wisconsin Power & Light Co., Western Resources, Inc., IES Utilities, and Commonwealth Electric Co.

"We consider this a success story," said FERC chair Elizabeth A. Moler. "While we still have a long way to go, this is real progress.

FERC Rejects NEPOOL Tariffs

The Federal Energy Regulatory Commission (FERC) has rejected a proposed amendment to the NEPOOL agreement that would have 1) facilitated negotiation of energy-only transactions by and among pool members, and 2) eliminated an otherwise applicable rate discount for transmitting energy involved in certain of those sales (Docket No. ER95-1466-000).A key aspect of NEPOOL operations is sharing of reserves. Each member is assigned a capacity responsibility equal to its load plus a share of the pool's combined reserve requirement.

SNG Gets Transition Cost Refund

The Federal Energy Regulatory Commission (FERC) has approved a comprehensive settlement for Southern Natural Gas Co. (SNG), resolving the company's costs associated with its transition to Order 636. The settlement resolves

23 rate cases, reduces rates, and provides about

$146 million in customer refunds (Docket No. RP89-224-000, et al.). Protesting parties have been severed from the case.

The refunds, plus $9.1 million contributed by SNG, will serve as a credit toward customers' liability for SNG's cost of realigning gas supplies under Order 636.

Perspective

California regulators and the utilities they oversee have been talking a lot in recent years about competition. But just being able to "talk the talk" isn't enough (em utility companies and the regulators who monitor them have got to "walk the walk." And on that score, they've just barely begun to crawl. Despite all the marketing hype, the monopoly mindset is still very apparent among industry officials and regulators.Take California's energy industry, for example.

Scientists Support SDG&E in EMF Case

Fourteen scientists, the

American Medical Association, and the California Medical Association have filed briefs with the California Supreme Court stating that they find no link between cancer and electromagnetic fields (EMF) from electric transmission lines: "The physics and cellular biology, combined, strongly indicate that it is not scientifically reasonable to believe that 60 Hz magnetic fields increase the incidence of cancer." The briefs were filed in a case involving San Diego Gas & Electric (SDG&E), which is being sued by the Covalt family, who claim that EMF from power li