Communication

provides cable television service in most of the counties. The PUC will wait to authorize the company to begin switching telephone calls until a separate docket resolves a number of generic issues associated with the advent of competition in the local telephone market.

The challenges facing the information technology (IT) industry into the next century are significant. Yet so are the opportunities.

Joseph Santaniello has been named director of management information systems for NUI Corp. He was previously director of engineering at Elizabethtown Gas, NUI's New Jersey operating division. Stephen Liaskos, formerly controller at Metallgesellschaft Corp., joins NUI as controller. Michael A. Palecki, most recently of the Florida Public Service Commission, has been named v.p. of regulatory affairs for NUI's southern division.

BICC Utility Cable Co.

U S WEST to South Central Utah Telephone Association, and also approved an agreement governing the rate treatment for the associated gain to U S WEST. The rate agreement allows U S WEST to retain for shareholders a portion of the gain on the sale in return for an obligation to pay for certain system upgrades and reduce the sales price for other transfers currently under consideration by the PSC.

The California Public Utilities Commission (CPUC) has once again turned back an attempt by the Communications Workers of America to invoke state utility regulation to solve labor complaints against Pacific Bell.The union had complained that PacBell's use of lower-paid technicians to perform duties allegedly reserved for higher-paid contract classifications violated the state's public utility code.

Peter B. Lilly has been named president and COO of Peabody Holding Co. Peabody is the world's largest private producer and marketer of coal. Lilly will continue to report to Irl F. Englehardt, Peabody Holding's chairman and CEO. Englehardt was recently named v.p. of Hanson Industries' energy group.The board of directors of The Dayton Power & Light Co. has elected Arthur G. Meyer treasurer.

IES Utilities, Inc. has named James E. Hoffman executive v.p. of customer service and energy delivery.

For a good half a century, electric regulation has meant law, accounting, and economics. But no more. Now it's all about computers, telecommunications, and file-transfer protocols. Forget about CWIP, AFUDC, double leverage, and interest synchronization. They are all irrelevant.

New business opportunities, improved internal communications, and energy information services: three solid reasons electric utilities should form a telecommunications strategy (if they haven't already). Yet, while these motivations are compelling, none really demands utility participation.

is Never Lost

In spite of ample arithmetical examples, the basic point made by Lawrence Kolbe and William Tye in "The Cost of Capital Does Not Compensate for Stranded-Cost Risk" (May 15, 1995) is simply wrong. The authors claim that "even if the cost of capital [reflects] full knowledge of the risk of stranded costs," it will not compensate for that risk.