FERC

THE CALIFORNIA DEBATE OVER ELECTRIC RESTRUCTURING IS now nearly four years old. And though it is nearing its final stages (the opening is now set for March 31), some of the most important questions as to how this will work in practice are just emerging.

The original bargain had called for the state's three large investor-owned utilities to vest basic control of their transmission networks in the new independent system operator in exchange for maintaining combined ownership of generation and transmission assets (and for a good level of assured stranded cost recovery).

THE COALITION OF utilities calling to "Repeal PUHCA Now!" has pulled together a first-class team of lobbyists. They have been working intensely on Capitol Hill for more than two years. But they haven't won the easy victory they thought was within their grasp when the Republicans took over the Congress in 1994. The major flaw in the coalition's approach is classic: The pro-repeal lobbyists have been tireless talkers, but poor listeners.

POWER PLANT SALE. Central Maine Power Co. has agreed to

sell its hydroelectric, fossil and biomass power plants totaling 1,185-MW of generating capacity to FPL Group, the holding company of Florida Power and Light. The sale price of $846 million exceeds book value and could permit up to a 10-percent rate cut for customers by the end of the year.

OHIO/TEXAS DEAL. Ohio-based American Electric Power

Co. and Texas-based Central and South West Corp. on Dec.

SOME PEOPLE WANT TO KNOW WHAT "GREEN POWER" means (em and, by extension, "environmentally friendly." Does that mean low emissions, including nuclear energy? Is renewable energy automatically green? Should the simple fact of compliance with all standards imposed by the Environmental Protection Agency afford the right to advertise power generation as green?

Consumers, agencies and state and federal officials want truth in advertising. Proponents of alternative generation claim consumers are willing to pay more for cleaner, greener energy.

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.

On Dec. 19, attorneys for Southwest Power Pool Inc., filed with the Federal Energy Regulatory Commission in Washington D.C., an open-access transmission tariff to provide for "one-stop-shopping" for short-term firm and non-firm point-to-point transmission service across seven southwestern states, SPP submitted the tariff as agent for its participating member public utilities and on behalf of all of its members. See, FERC Docket No. ER98-1163.

ON OCT. 31, 1997, ENTERGY CORP. AND 16 OTHER MEMBERS

announced their intention to withdraw from the Southwest Power Pool regional reliability council and join the neighboring Southeastern Electric Reliability Council. The announcement shocked the SPP and its members, plus other industry observers and stakeholders.

While significant in number, the withdrawals do not necessarily signal widespread displeasure with SPP's initiatives and performance.

THE RECENT INCREASE IN MERGER ACTIVITY IN THE energy and telecommunications industries has concerned state regulators for some time. Such concern reveals how the practical or "local" aspects of business deals often clash with broader national issues reviewed by federal authorities in merger cases.

In electric utility mergers, for instance, the Federal Energy Regulatory Commission will address effects on competition, rates and regulation.

CONSUMER FRAUD. The National Association of Attorneys

General, meeting Nov. 18 in Washington, D.C., to discuss electric restructuring, issued a warning to electric consumers on fraudulent schemes and abusive practices by scam artists. The warning encourages consumers to check their electric bills for unusual provider names or charges, and to avoid participating in contests that require a signature that can be used to switch an account.

RATE REDUCTION BONDS.