Connecticut Department of Public Utility Control

Signaling victory over one of the more complex issues in the move to competition in the local telephone market, regulators in Connecticut and New York have adopted rate plans for unbundled interconnection services offered by incumbent local exchange carriers.

Both states also recently approved the wholesale discount rate that the LECs must apply to existing services when offering them for resale by competitive companies. See Re AT&T Communications of New York, Inc., 173 PUR4th 274 (N.Y.P.S.C. 1996); Re So. New England Tel. Co., Docket No. 95-06-17, March 25, 1997 (Conn.D.P.U.C.).

Perhaps the only political prediction bound to come true this year is that the words ôelectric restructuringö will reverberate in nearly every stateÆs legislative chamber.

So says Matthew Brown, director of the energy project at the National Conference of State Legislatures.

But other factors support BrownÆs prediction. Public Utilities FortnightlyÆs informal survey of most states turned up similar results. Legislators know that the Clinton Administration and the U.S. Congress plan to introduce a federal bill this year.

The Connecticut Department of Public Utility Control (DPUC) has set rates charged by Southern New England Telephone Co. (SNET) for service elements for local exchange carrier (LEC) services provided at wholesale to new competitors in the LEC market.

It identified the Total Service Long Run Incremental Cost (TSLRIC) method as the starting point for its ratemaking decisions, but rejected arguments by several parties to employ TSLRIC without any further contribution to joint and common costs.

Having completed several rounds of telecommunications reforms, the Connecticut Department of Public Utility Control (DPUC) has now announced a number of policy decisions governing the infrastructure provided by new market entrants. To ensure that the public benefits from a competitive market through a "network of networks," the DPUC ordered all facilities-based carriers to make their services available for resale and their networks available on an unbundled basis.

SCANA Corp. promoted William B. Timmerman, president, to COO. John L. Skolds, senior v.p. of generation at SCANA subsidiary South Carolina Electric & Gas, became president and COO. Skolds replaces Bruce D. Kenyon, who left the company to become president of Northeast Nuclear Energy Co.

James T. Egler was promoted from president of Equitable Resources Inc.'s marketing division to CEO of Equitable Gas Co., a regulated subsidiary.

Transcontinental Gas Pipe Line Corp. promoted Bob Bahnick to v.p., operations & engineering.

The Connecticut Department of Public Utility Control (DPUC) has authorized Connecticut Natural Gas Corp., a natural gas local distribution company (LDC), to increase rates by $8.9 million, with a return on equity (ROE) of 10.76 percent.

The Connecticut Department of Public Utility Control (DPUC) has finished investigating levels of compensation for selected utility officials. The study followed allegations by the state's Attorney General that certain pay increases to state officials appeared excessive and might contribute to higher utility costs or "adversely affect economic development" in the state.

In particular, the Attorney General cited executive salaries at Connecticut Natural Gas Corp. and Connecticut Energy Corp., parent corporation of Southern Natural Gas Co.

Citing competition in residential energy markets, the Connecticut Department of Public Utility Control (DPUC) has approved a new heat-pump rate discount and installation rebate program proposed by United Illuminating Co. (em but with an eye trained on market share.

The DPUC acknowledged a prior reluctance to approve tariffs that promote specific end uses, but found that competition justified new approaches. It also cited other positive factors, including: 1) the utility's long-term surplus capacity outlook, 2) its low marginal cost, and 3) heat pump efficiencies.

High industrial electricity rates are often blamed upon current regulation. Some state regulators respond with broad-based reforms; others simply reallocate system costs from industrial rate classes to rates for more inelastic customers (em namely, residential users.

In a little over a year, the electric utility industry has seen six significant mergers.1 This trend toward consolidation most likely will increase as the industry becomes more competitive.