Commission

R.I.: Competition Must Reduce Rates for All

Working to identify a set of specific issues for consideration in its investigation of competition and open access for the electric industry, the Rhode Island Public Utilities Commission (PUC) has refused to permit additional costs for environmental improvements and the development of renewable resources.

Retail Wheeling Rates Upheld

The Michigan Public Service Commission (PSC) has denied requests to modify its newly instituted retail wheeling experiment (see 161 PUR4th 441). However, the PSC did clarify its ruling to permit a form of "self-service" wheeling by the Dow Chemical Co. (em a limited partner, along with Consumers Power Co., in the Midland Cogeneration Venture (MCV). Dow had asked the PSC for an exemption from restrictions on participation by utility affiliates as third-party providers in their own service territory.

Utility Impedes Competition in Ohio

The Ohio Public Utilities Commission (PUC) has concluded that an Ohio Edison Co. contract to provide thermal cooling service to the Mahoning County Jail, at revenues below the actual cost of providing service, was negotiated for the purpose of destroying competition. A competing thermal services company, Youngstown Thermal Limited Partnership, had alleged that Edison proposed to engage in the cooling business without PUC authorization and at a below-cost rate that violated PUC rules.

Wash. Champions Ratepayers Over Competition

The Washington Utilities and Transportation Commission (UTC) has issued an interim policy statement in its ongoing inquiry into regulatory tools to encourage the development of new resources by regulated monopoly utilities.

Md. Rejects Restrictions on Diversification

The Maryland Public Service Commission (PSC) has decided against requiring regulated utilities to obtain prior approval for nonutility activities or diversification plans. The PSC also rejected a proposal that utilities pay a royalty to consumers of regulated services to account for

intangible benefits gained by the unregulated subsidiaries. The case involved complaints regarding merchandise and appliance services provided by Baltimore Gas and Electric Co. (BG&E).

Pipeline Asks for Market-Based Rates

The Federal Energy Regulatory Commission (FERC) has set for hearing a request by Koch Gateway Pipeline Co. (KGP) to charge market-based rates for firm and interruptible natural gas transportation services (Docket No. RP95-362-000). First, however, the FERC must conclude Docket No. RM95-6-000, which will delineate the circumstances under which it may approve market-based rates.

Perspective

Electric industry restructuring is progressing at a rapid pace. Across the country, states are moving ahead to encourage retail competition. Two states have allowed retail wheeling experiments (Michigan and New Hampshire), utilities are proposing them, and over 20 states are studying the issue. Back in Washington, Congress is examining legislation to amend the Public Utility Holding Company Act (PUHCA).

Virginia Investigates Restructuring

The Virginia Corporation Commission has launched a formal investigation of electric industry restructuring and emerging competition (Case No. PUE950089), focusing on reliability, continuity and stability of rates, fairness to customers and investors, and whether truly competitive markets can be developed.

Ohio Edison Rate Proposal Worth Watching

Ohio Edison Co. has asked the Ohio Public Utilities Commission (PUC) to reduce rates and cap base rates until 2006, thereby extending its present rate freeze for an additional 10 years. The plan, which is supported by the Office of Consumers' Counsel and the Industrial Energy Users-Ohio, would decrease base rates, currently frozen at 1990 levels, by almost $600 million over the next 10 years. Residential and small business rates would decrease by $1 a month until January 1, 2001, and by $1.50 per month thereafter.

Texas Outlines Access, Comparability Terms

The Texas Public Utilities Commission (PUC) has issued its proposal for achieving electric transmission access and full wholesale competition (Project No. 14045).To achieve comparability, all utilities would be required to use their own transmission systems for all purposes at the same prices and under the same terms and conditions they apply to third-party transmission customers.