Commission

What's in a Name?

Charles Studness's article "CPUC Chooses Reregulation over Deregulation" (Financial News, July 15, 1995) reminds me of Humpty Dumpty's scornful remark in Lewis Carroll's Through the Looking Glass: "When I use a word, it means what I choose it to mean (em nothing more nor less."

When Studness discusses "deregulation," it is clearly what he chooses it to mean (em not what the California Public Utilities Commission (CPUC) proposes in its May 24 majority decision on deregulating the electric utility industry.

Dan W. Reicher was named acting assistant secretary for policy at the U.S. Department of Energy. Reicher has served as deputy chief of staff and counselor to Secretary of Energy Hazel R. O'Leary since 1993 and was a member of the Clinton-Gore transition team. Reicher replaces Jack Riggs, who left to take a senior position at the Aspen Institute.PECO Energy Co. selected William H. Smith III as v.p. and group executive of its new Telecommunications Group. Stepping into his seat as nuclear support v.p. is Drew Fetters.

James H.

Companies in competitive industries routinely collect information about their customers through a variety of sources (em including surveys, national census, and government and private sources. Such customer information and its applications are jealously guarded secrets, rarely shared with others in the industry. Customer information is not limited to expenditure on a company's products or services, but usually includes a customer profile.

The Maryland Public Service Commission (PSC) has completed its investigation of market competition and regulatory policies for the electric industry. The PSC chose a "measured approach," ruling against retail wheeling at this time while permitting, but not requiring, utility proposals for performance-based ratemaking.

The PSC described electricity rates in the state as "globally competitive," noting that Maryland's utilities were not encumbered by a lot of expensive nuclear power plants or high-cost cogeneration contracts.

The California Memorandum of Understanding (MOU) is an agreement between Southern California Edison Co. (SCE), the California Manufacturers' Association, the California Large Energy Consumers' Association, and the Independent Energy Producers. It tackles three major issues:s recovery of stranded assets

s market power

s market structure.

If the MOU is eventually endorsed, it might be a landmark in electric restructuring \(em and not only in California.

Regulatory Commission (FERC) to approve a set of market-based rates for short-term firm transportation, interruptible transportation, temporary capacity release, and storage services (Docket No. RP95-408).

Citing a need to prepare for the emerging competitive marketplace, Central Illinois Light Co. has volunteered to experiment with direct access for all of its customers. The utility has asked the Illinois Commerce Commission to consider two separate pilot programs that will allow customers to purchase some or all of their power requirements from other suppliers.

The staff of the Arizona Corporation Commission have recommended rejection of a Tucson Electric Power Co. (TEP) proposal to form a holding company, with TEP becoming a wholly-owned subsidiary. The proposal reflects TEP's desire to pursue opportunities in the domestic and international power markets, including development of independent power projects, acquisition of interests in existing power facilities privatized by foreign governments, and construction of cogeneration facilities to serve the energy needs of large industrial customers.