Pacific Enterprises

As utility takeovers break new ground, the FERC ponders proposed rules, perhaps already out of date.

A year ago, when U.S. Antitrust Czar Joel Klein talked of a "window of opportunity" for electric utility mergers, he didn't predict when it would close.

And it hasn't yet.

In the 12 months leading up to January 1998, when Klein had addressed the Federal Energy Regulatory Commission through its "Distinguished Speakers" series, only the ill-timed Primergy deal had been turned down. The next year, 1998, would prove no different.

ALLYSON K. DUNCAN joined the Kilpatrick Stockton firm as counsel after having served as a commissioner on the North Carolina Utilities Commission since 1991. Prior to her appointment to the commission, Duncan served as a judge on the North Carolina Court of Appeals.

Two commissioners at the Wisconsin Public Service Commission resigned. Cheryl L. Parrino, chairwoman, resigned after 22 years with the PSC. She recently was appointed CEO of Universal Service Administrative Co. Daniel J. Eastman resigned to rejoin the private sector.

UNISOURCE Energy Corp. elected Larry W. Bickle and Harold W. Burlingame to its board of directors. Bickle is the former chairman and CEO of TPC Corp. and cofounder and managing director of Haddington Ventures LLC. Burlingame is executive vice president of human resources at AT&T and a director of the Work in America Institute.

John Devine, vice president of Duke Engineering & Services, was elected president of the National Hydropower Association. Devine has served as a director of the National Hydropower Association since 1993.

James E.

Courts

ENERGY SUPPORT SERVICES. An Illinois appeals court affirmed a 1997 decision by the state commission that had denied authority to Commonwealth Edison to offer "energy support services," such as design, engineering, construction, analysis and management of electrical power equipment and energy systems. The court made this decision despite the utility's argument that no evidence existed to support the commission's finding that ComEd enjoyed a monopolist's advantage over competitors.

CALIFORNIA IS AT IT AGAIN. THE SUBJECT IS NATURAL GAS. What the "blue book" promised for electricity, the newly issued "green book" says it will do for gas.

On Jan. 21, the Division of Strategic Planning at the state public utilities commission issued a new 125-page study, Strategies for Natural Gas Reform: Exploring Options for Converging Energy Markets. On the same day, the PUC opened a new rulemaking (R. 98-01-011), asking for input on the DSP report and posing its own list of some 25 questions on where to go with gas.

State Legislatures

UTILITY HOUSE CALLS. Michigan Gov. John Engler (R) signed into law a bill making it a felony to impersonate a utility employee to enter private property for criminal purposes. The new law calls for those convicted to be imprisoned for not more than two years and to pay a maximum fine of $1,000, or both.

ELECTRIC RESTRUCTURING. Illinois Gov. Jim Edgar (R) signed into law an electric restructuring bill for the state. Edgar noted that concerns over the bill were addressed by the state's two largest utilities, Commonwealth Edison and Illinois Power Co.

THE board of trustees for Con Edison named James P. O'Brien general auditor. O'Brien joined Con Edison in 1972 after serving in the U.S. Navy. He will replace Lawrence F. Travaglia who is retiring.

Consolidated Natural Gas Co. named Elena C. Mola vice president, Latin America/Europe, of its subsidiary CNG International.

Siemens Power Transmission and Distribution named David Johnson vice president of its distribution automation division.

The Energen board of directors announced two promotions.

The California Public Utilities Commission approved a performance-based ratemaking plan for Southern California Gas Co. that could yield substantial savings, which the company is required to share with customers.

The PUC said the proposed merger of the utility's parent, Pacific Enterprises, and Enova Corp., parent company of San Diego Gas & Electric Co., should improve efficiency and benefit ratepayers.

The Federal Energy Regulatory Commission has approved the merger of Brooklyn Union Gas Co. and neighboring Long Island Lighting Co., although concerns emerged about potential vertical market power. A new holding company, temporarily called HoldCo, will run the merged corporation.

At the same July 16 meeting, FERC indirectly sanctioned the merger of Texas-based Valero Energy Corp. with PG&E Corp., the holding company (created Jan. 1, 1997) for California-based Pacific Gas & Electric Co.

LILCO + Brooklyn Union.

Having approved a performance-based ratemaking mechanism for Southern California Gas Co., the California Public Utilities Commission is free to rule on the merger of Pacific Enterprises (parent company of SoCal Gas) and Enova Corp., which owns San Diego Gas and Electric Co.

The PBR should reduce annual revenues by $160 million. If earnings exceed the authorized 9.49-percent rate of return, then a portion will be returned to customers.

The PBR is effective for five years.