Federal Energy Regulatory Commission (FERC)

The National Hydropower Association (NHA) has asked the Federal Energy Regulatory Commission (FERC) to reform its regulations governing the relicensing of hydroelectric projects. No legislation would be involved.

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.

The Federal Energy Regulatory Commission (FERC) has adopted a final rule for nuclear plant decommissioning trust funds that will allow greater investment flexibility and enable funds to take advantage of changing market conditions (Docket No. RM94-14-000). The rule aims to improve the returns earned on funds contributed through wholesale electric rates, thereby decreasing the amount collected from ratepayers.

For the first time, the Federal Energy Regulatory Commission (FERC) has issued opinions disallowing income tax allowances in the cost of service with respect to income from limited partnership interests held by individuals. In Lakehead Pipe Line Co., Ltd. Partnership, the FERC found that allowing a tax allowance for limited partnerships made up of individuals would give the investors an after-tax return on equity higher than they are entitled to (Docket Nos. IS92-27-000, et al.).

With this issue I've finished up my first 12 months as full-time editor of PUBLIC UTILITIES FORTNIGHTLY. During that time, I've tried to adhere to few simple rules. If I'm lucky, I'm batting four out of five:

s Trust ideas, not facts

s Welcome different views

s Don't shy from difficult subjects

s Make it easy to read

s Take a day off now and then.

Someone once said that an editor's job is twofold: "Simplify and exaggerate." That advice may sound peculiar, but one could do worse.

The Federal Energy Regulatory Commission (FERC) has approved the proposed merger of Midwest Power Systems, Inc. and Iowa-Illinois Gas and Electric Co. to form MidAmerican Energy Co. as consistent with the public interest (Docket No. EC95-4-000).

The City of Independence, MO, asked the FERC to condition the merger on MidAmerican providing some form of protection against merger-related rate increases, but the FERC found no evidence that costs would increase as a result of the merger.

On May 31, the Gas Industry Standards Board (GISB) circulated for industry review and comment proposed electronic standards for capacity release. The proposed standards are based on the work of the Federal Energy Regulatory Commission (FERC) electronic bulletin board (EBB) working group, and include those formally adopted by the FERC in Order 563. GISB added easy implementation methods and expanded the definitions of the information requirements. It also included enhancements that the FERC EBB working group plans to file for FERC review in the near future.

rolled-in pricing for new pipeline facilities where the benefits to the system are proportionate to the rate impact on existing customers (Docket No. PL94-4-000). In the past, the FERC made cost-recovery pricing decisions during the first rate case after the facilities were constructed. Now, the FERC will make its determination when the certificate is issued.

The Securities and Exchange Commission's Division of Investment Management has proposed repeal of the Public Utility Holding Company Act of 1935 (PUHCA), with consumer safeguards preserved and transferred to the Federal Energy Regulatory Commission (FERC). Safeguards would include state access to holding company books and records, federal audit authority, and oversight of affiliate transactions.