DSM

Business Wire

William Catacosinos has resigned as chairman of MarketSpan Corp., the utility formed to replace the troubled Long Island Lighting Co. Catacosinos is under investigation by the New York attorney general due to a $42-million severance payment as part of the buyout of LILCO by the New York government-run Long Island Power Authority (see Public Utilities Fortnightly, August 1998, p.28).

SCT Utility Systems Inc., signed a software and services agreement worth about $13 million with the city of Seattle for the BANNER Customer Management System.

But what of commissioners' aides and advisers? The people behind the scenes, who, in some cases, propose decisions for regulators to act on. What wisdom can commission aides share with the industry?

Further, are these posts proving grounds? Can we expect to see aides filling commission seats someday? Elizabeth A. Moler, deputy energy secretary, started as a Senate Energy Committee aide. James J. Hoecker, Federal Energy Regulatory Commission chairman, was once a FERC adviser.

Public Utilities Fortnightly spoke with five aides, whose average age is 37.

Federal Agencies

Nuclear Plant Fines. The Nuclear Regulatory Commis-

sion has proposed fines totaling $2.1 million against Northeast Nuclear Energy Co. for many violations at the company's Millstone nuclear plant in Waterford, Conn. The fine marks the largest civil penalty ever proposed by the NRC. Northeast Utilities said it will pay the fine, which it called "a necessary and important step toward bringing to closure a very disappointing and difficult chapter in the company's history." The utility said it will not pass the cost onto ratepayers.

Electric Futures.

BY WHAT AUTHORITY CAN STATES FAVOR RENEWABLE

energy in a restructured electricity market?

Renewable resource funding marks a major point of contention in utility deregulation. Environmental groups fear that without some form of compulsion or subsidy, or both, renewable resources will not survive in an energy economy based on least direct consumer cost. However, utilities do not want to be saddled alone with the chore of carrying all renewables to market.

The Idaho Public Utilities Commission has rejected a request by Intermountain Gas Co. to cut demand-side management and conservation requirements from its integrated resource planning guidelines, despite company claims that reforms were needed to align the planning process with current business practices.

Meanwhile, the Florida Public Service Commission has authorized Florida Power and Light Co. to terminate an existing research and development program for a new gas-driven technology.

Idaho.

My electric company, Potomac Electric Power Co., has announced a joint venture with RCN Corp. of Princeton, N.J., to offer local and long-distance telephone service to callers in Washington, D.C., and nearby areas, plus cable television and high-speed connections to the Internet. With stockholder money, PEPCO would compete head-on against Bell Atlantic, which won approval from the Federal Communications Commission on Aug. 14 for its $25-billion merger with NYNEX.

Reporting the story, The Washington Post quoted PEPCO President John M.

Sound bites from state and federal regulators.

Appliance Repair Business. Responding to complaints from unregulated providers, New York rules that natural gas LDCs must run their appliance repair services through a separate subsidiary. PSC terms its existing policies "anachronistic" and finds that subsidies for appliance repair services are inappropriate. Case 93-G-0804, April 4, 1997 (N.Y.P.S.C.).

DSM Program Design. Michigan appeals court says state PSC exceeded authority and "impermissibly interfered with management decisions" of Detroit Edison Co.

Mr. Lindsay's March 1 letter (PUBLIC UTILITIES FORTNIGHTLY, p. 6) requires some further discussion. We do agree that reducing cooling seasonal peak electric demand is desirable. Lessening the electric infrastructure's environmental effects and electric system failures, as we witnessed in the summer of 1996, is to the public good. However, thermal storage systems have siting issues and the potential to run out of capacity at the worst possible time on peak days.

Sound bites from state and federal regulators.

IntraLATA Toll Calling. North Carolina says newly certified competitive local exchange telephone carriers must apply for separate authority to provide intraLATA toll services, even though incumbent local carriers need not do so. Docket No. P-100, SUB 133, March 31, 1997 (N.C.U.C.).

Dialing Parity. Oregon PUC adopts policies on telephone dialing parity to allow all telephone users who choose alternate carriers to make calls without dialing extra numbers. Order No. 97-107, March 18, 1997 (Ore.P.U.C.).

Payphone Subsidies.

In a series of rulings regarding Wisconsin Electric Power Co.,

the Wisconsin Public Service Commission has directed the

utility to reduce electric charges and natural gas service rates.

In a similar ruling, the commission also has authorized Wisconsin Public Service Corp. to boost rates for natural gas, while trimming rates for electric service.

Wisconsin Electric. The commission ordered Wisconsin Electric to cut electric rates by $7.383 million. Rate of return on common equity was set at 10.8 percent.