In an ideal world, legislation would have already happened."

That was Elizabeth Moler, deputy secretary of energy, testifying as the first witness at a Feb. 20 public conference at the Federal Energy Regulatory Commission. The forum attempted to address how to ensure access to transmission as the electric industry builds a new framework to maintain system reliability.

Having just stepped down from the top spot at the FERC, Moler knew what to expect. She understood the limits of the FERC's statutory authority and its budget.

THE U.S. TREASURY DEPARTMENT HAS ISSUED RULES that will allow all public power systems to participate in independent system operators without risk of losing the tax-exempt status of their bonds.

Investor-owned utilities are not happy. According to the Edison Electric Institute, the regulations significantly expand the ability of large government-owned electric utilities to use federal subsidies to compete against private utilities.

Meanwhile, the American Public Power Association is pleased that the rules passed Jan.

THAINE J. MICHIE, general manager of the Platte River Power authority, was named president of the American Public Power Association. Michie has more than 30 years experience in the electric power industry; he has served on the APPA board since 1990.

Lanny P. Waguespack was chosen to head CMS Gas Transmission and Storage Co.'s new Denver office. He also was named director of business development in the western U.S. for the CMS Energy Corp. unit.

Executives at two subsidiaries of Aquarion Cos. were elected to leadership positions at industry associations. Leendert T.

An Editorial Response:

Some critics wants PMAs out of the electric business. But that could leave market power to a few, large monopolies.

Department of Energy Secretary Federico Peña observed in an address at the recent annual meeting of the Edison Electric Institute: "The [electric utility] industry is incredibly diverse, with investor-owned utilities, municipalities, cooperatives, the federal power system, independent power producers, marketers and others.

Subsidies? Maybe. But how about reciprocity? Should Congress let PMAs, munis and co-ops decline open access?

Until recently, most congressional debate on utility deregulation has focused on the future of investor-owned utilities and independent power producers and marketers. Lobbyists for government-owned or cooperative-owned power companies have tried to downplay their clients or to seek exemptions.

PUC endorses direct access, plant divestiture and limits on recovery of stranded costs. Says order will not interfere with 1990 bankruptcy plan for Northeast Utilities. The New Hampshire Public Utilities Commission has issued its final plan for restructuring the state's electric industry, at the same time announcing what is believed to be the first formal policy decision by a state utility commission that would deny full recovery of costs left "stranded" by the transition to competition.

Released on Feb.

Vera B. Claussen has been elected the first female president in the American Public Power Association's 56-year history. Claussen is commissioner of Public Utility District Number Two of Grant County in Euphrata, WA. Other new APPA officers include president-elect Thaine J. Michie, g.m., Platte River Power Authority, Fort Collins, CO; and vice president Walter R. McGrath, g.m., Braintree, MA, Electric Light Department.

The United States Energy Association has three new officers: P.J.

APPA Director Alan Richardson will fight

toe-to-toe with well-heeled

adversaries. If he were a boxer, his name might be Alan "The Right" Richardson.

The executive director of the American Public Power Association (APPA) always toes the canvas, swinging for equity for his 1,750 members, shadowing its "heavyweight" adversaries, investor-owned electric utilities (IOUs).

You've heard talk lately about the convergence of electricity and natural gas. That idea has grown as commodity markets have matured for gas and emerged for bulk power.

But some economists take a different view. They see the real convergence occurring between electricity and telecommunications. I'm not talking about the "smart house" or fiber-to-the-whatever. Instead, how is the product is created?