The Michigan Public Service Commission (PSC) has approved terms for interconnection and mutual compensation between Ameritech Michigan, a dominant local exchange carrier (LEC), and City Signal, Inc., a newly certificated competitive provider of LEC services. The move marks another step in the PSC's experiment with local telephone competition in the Grand Rapids exchange.
The bad news for qualifying facilities (QFs) continues. A high-profile project in the District of Columbia appears dead, but developers won a small victory when a federal court refused to stop a suit by the developers against municipal officials for damages connected with the regulatory barriers erected by the city at the behest of concerned citizens. More damaging was the recent decision of the Massachusetts Supreme Court requiring reluctant regulators to review the ceiling price set for QF purchases in a recent bid conducted by Boston Edison Co.
As evidence of a continuing trend toward competition in the retail market for natural gas, state regulators point to the continued popularity of special discount rates. Designed to allow local distribution companies (LDCs) to retain existing customers, these rates are often approved despite concerns about the costs and their effect on other customers.
The Delaware Public Service Commission (PSC), for one, recently approved a proposal from Delmarva Power & Light Co.
One of the most exciting challenges facing electric utilities is the opportunity to participate on the so-called "information highway." Not only is the technology evolving at a dazzling pace, but the opportunities to make or lose money will be staggering. The growth in sales of electricity has been and will be relatively slow compared to the dynamic growth in sales of cable television, information, online, cellular telephone, and other telecommunications services.
The Federal Energy Regulatory Commission (FERC) has issued its comprehensive notice of proposed rulemaking (NOPR) designed to move the wholesale electric industry to a more competitive marketplace. The order, Open Access Non-discriminatory Transmission Services by Public Utilities and Recovery of Stranded Costs by Public and Transmitting Utilities, weighs in at over 300 pages (Docket Nos.
The bankrupt El Paso Electric Co. (EPE) has asked the New Mexico Public Utilities Commission for permission to issue securities as part of its proposed acquisition by Central and South West Corp. (CSW) (em a necessary step in consummating the merger. Under EPE's third amended plan of reorganization, the utility would recapitalize by issuing new debt securities and preferred stock. CSW also would infuse additional common equity into EPE. The new securities, along with cash payments and shares of CSW common stock, would be used to settle the outstanding claims of EPE's creditors.
The New York Public Service Commission (PSC) has frozen 1995 electric rates for Long Island Lighting Co. (LILCO) and for Consolidated Edison Co. (CE), emphasizing the need for both utilities to control costs. CE had asked the PSC to approve a three-year rate plan that includes a $223-million (3.6-percent) increase the first year. According to Fitch Investors Service, both orders offer constructive and clear signals that the PSC will attempt to strike a reasonable balance between investor and consumer interests.
Southern California Edison (SoCalEd) has unveiled a plan to slash its electric rates 25 percent by 2000, in anticipation of increased competition. The goal is a "real" price decrease (that is, adjusted for inflation), which translates into a system average price reduction from the present 10.7 cents per kilowatt-hour to below 10 cents. SoCalEd will consider a broad range of initiatives, most of which will require the approval of the California Public Utilites Commission. Included is an immediate rate freeze for residential and small business customers through 1996.
The Minnesota Court of Appeals has upheld a Minnesota Public Utilities Commission (PUC) ruling that Minnegasco's appliance sales and service business should be charged for the value of goodwill related to Minnegasco's name, reputation, and image. The court also ruled that the cost of responding to emergency gas leak calls should be shared by the utility and its appliance service businesses (Docket Nos. C5-94-1820 and C7-94-1821).
Detroit Edison Co. (DE) has received approval from the Michigan Public Service Commission for
10-year sole-supplier contracts for electric power and related services with Chrysler, Ford, and General Motors. (Case No.
U-10646). DE is believed to be the first utility in the nation to secure such agreements for an entire industry in its service territory
The almost identical contracts involve a
1,000-megawatt combination of firm and interruptible power, giving rate discounts to the automakers.