Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission has approved the merger of Public Service Co. of Colorado and Southwestern Public Service Co. to create "New Century Energies" (Docket Nos. EC96-2-000 and EC96-2-001).

In a separate order, the FERC has approved the open access transmission tariff for Southwestern Public Service, Public Service Co. of Colorado, and its subsidiary, Cheyenne Light, Fuel and Power Co. (Docket No. ER96-2572-000).

Public Service Co. of Colorado and Southwestern Public Service Co. had filed an unopposed settlement agreement.

Electric's Players Tell Senate Panel Where to Jump In, Butt Out

With three hearings behind it, what has the Senate panel on electric restructuring learned from regulators, utility execs and other industry types who have testified?

Granted, some candor has emerged from all the maneuvering and positioning typical of electric industry and sector leaders, but is that enough for the Senate Committee on Energy and Natural Resources to develop a position on federal legislation, without input from energy consumers and the voting public?

Sen. Frank H.

Competitors would have LDCs quit the merchant function and restrict

their dealings with affiliated marketers. But is that really good for consumers?

Those who would restrict business dealings between natural gas local distribution companies and their marketing affiliates (em going so far as to ban LDCs from the merchant function (em often overlook one critical downside: what those rules would mean for the small gas customer.

A regulatory policy for a code of conduct and LDC merchant service must improve the position of consumers.

While authorizing Nashville Gas Co. to increase rates by $4.417 million, the Tennessee Regulatory Authority has modified its existing policy on the treatment of advertising expenses in gas rate cases.

The authority abandoned a past policy limiting advertising recovery to 0.5 percent of the company's gross revenues. It also ordered a 50-50 sharing between ratepayers and shareholders. It granted, however, the LDC's request for full recovery of both payroll and nonpayroll "sales promotion" costs, rejecting allegations the costs should be treated as advertising expenses.

The Federal Energy Regulatory Commission has issued its notice of a public conference on "Issues and Priorities for the Natural Gas Industry," which will be held May 29 and 30. The FERC wants to gather information to establish its regulatory goals and priorities in the post-Order 636 environment (Docket No PL97-1-000).

The FERC is requesting a broad analysis of present and future industry issues, including those deemed the highest priority for FERC action.

John Yurkanin was appointed senior v.p. of marketing and sales for LG&E Natural. Yurkanin joined LG&E in 1996 and served as senior v.p., producer services. Yurkanin will direct LG&E in expanding marketing presence with utilities and other marketers. Also at LG&E, Mark Stanger was appointed v.p., producer services. Stanger will direct service business, including contracting for new sources of gas supply and managing relationships with current suppliers.

Commissioner Hullihen Williams Moore will serve as chairman of the State Corporation Commission for the next year.

But not for long (em as power producers and

customers get more creative in matching plants with loads Dynamic scheduling is a "sleeper" issue in the move toward electric competition. Industry players are debating independent system operators. They are focusing on issues of governance and the form of transmission pricing. Consequently, they are ignoring critical issues concerning ancillary services. These services are not receiving the attention they deserve.

New legislation would tackle the most difficult problem (em low load factors for small-volume customers.

We commend the Natural Gas Competition and Deregulation Act, SB 215, passed by the Georgia General Assembly in March. (Governor Zell Miller was expected to sign the bill in April.) The Georgia legislation envisions a new framework for regulating the retail gas market.

California's three largest investor-owned utilities have petitioned the Federal Energy Regulatory Commission to convene a technical workshop on market-power issues raised by electric deregulation. Although a workshop had been held on Jan. 17, the utilities say the need more guidance (Docket No. ER96-1663-000).

The utilities are most concerned with the issue of "must-run" plants, and how to minimize the market power of generating units that must run to maintain reliability.

House Energy and Power Subcommittee Chairman Rep. Dan Schaefer (R-Colo.), recently reintroduced his comprehensive electric restructuring bill, which largely mirrors legislation Schaefer had introduced in the 104th Congress.

The new bill, "Electric Consumers' Power to Choose Act of 1997" (H.R. 655), was presented Feb. 10 and differs from the original only in that it would not preempt the state restructurings already taking place.