PEPCO

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.

The merger of Baltimore Gas and Electric Co. and the Potomac Electric Power Co. will not harm consumers by restraining competition in the electric market, according to the Maryland Public Service Commission.

The commission approved the merger provided Baltimore Gas and Electric lowers its customers' electric rates by $43.876 million and PEPCO lowers its Maryland customers' rates by $12.101 million. The competitive effect of the merger was still under examination at the federal level.

The Federal Energy Regulatory Commission and the Maryland Public Service Commission have approved the merger of Baltimore Gas and Electric Co. and Potomac Electric Power Co. to form Constellation Energy Corp.

However, the stiff terms for approval (em including mandatory rate cuts (em have prompted the utilities to claim they might abandon the merger.

If truth is the first casualty of war, as we learned from author Mark Krebs ("It's a War Out There: A Gas Man Questions Electric 'Efficiency,'" December 1996, p. 24), then certainly the truth has been mutilated beyond recognition.

His article, which suggests that electric utilities have used conservation and demand-side programs improperly (to build electric load at the expense of natural gas!) is full of inaccuracies, misleading charts and other errors.

Jay P. Lukens, formerly a principal at Energy Market Economics, Inc., was hired by The Economic Resource Group, Inc., as managing director and principal of the company's new Houston office.

Edison Source tapped Aram G. Sogomonian, a former executive at Enron Capital and Trade Resources as its new corporate risk management v.p. Sogomonian was Enron's director of risk analytics and asset price, and also has worked at Unocal.

Larry Grossman, a senior v.p. at Cassidy & Associates, was retained by the Council on Superconductivity for American Competitiveness as executive director.

A divided Federal Energy Regulatory Commission (FERC) has set for expedited hearing the proposed merger between Baltimore Gas and Electric Co. (BGE) and Potomac Electric Power Co. (PEPCO) to form "Constellation Energy Corp.," to determine its effect on competition (Docket Nos. EC96-10-000 and ER96-784-000).

It will also consider the applicants' proposed open-access transmission rates. An administrative law judge will certify the record to the FERC by November 1.

Marc W. Chupka, former special assistant to Energy Secretary Hazel R. O'Leary, has been promoted to acting assistant secretary for policy. He replaces Dan Reicher, now O'Leary's chief of staff. Melanie A. Kenderline was appointed deputy assistant secretary for House liaison in the office of congressional, public, and intergovernmental affairs.

MidCon Corp.'s president and CEO, John F. Riordan, was elected chair of the Gas Research Institute, succeeding Thomas L. Fisher of Northern Illinois Gas Co.

Peter C. Nelson was named president and CEO of California Water Service Co. Nelson also will be a director. He comes from Pacific Gas & Electric Co., where he was v.p.-division operations. He replaces the retiring Donald L. Houck.

Jack Lucido of ANR Pipeline Co. was elected to the American Gas Association's pipeline research committee, succeeding Gary Walker of Pacific Transmission Co.

The Electric Power Research Institute hired Karl G. Van Orsdol as senior manager, international relations.

Baltimore Gas and Electric Co. (BG&E) on September 25 announced that it would acquire Potomac Electric Power Co. (PEPCO) for $2.9 billion, creating an as-yet unnamed company with assets exceeding $15 billion, and annual revenues of about $5 billion. The new company will be one of the 10 largest electric utilities in the nation, with 1.8 million electric customers and 530,000 natural gas customers.

BG&E shareholders will receive one share of stock in the new utility for each share of common stock. PEPCO stockholders will receive .997 share for each share.

The District of Columbia Public Service Commission (PSC) has rejected a proposal by Potomac Electric Power Co. calling for rate recovery of lost revenues associated with demand-side management (DSM) activities.