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Fortnightly Magazine - April 15 1996

Reliability, Not Economy, Dictates Transmission Line

Phillip S. Cross

The California Public Utilities Commission (CPUC) has approved a proposal by Sierra Pacific Power Co. to construct a 345-kilovolt overhead transmission line, but not simply to gain access to low-cost power. Instead, the CPUC appeared to emphasize concern over reliability.

Sierra Pacific, involved in merger plans with The Washington Water Power Co., had cited access to low-cost power from the Bonneville Power Administration as an important reason to build the transmission line.

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WP&L Withdraws From MAIN

Lori A. Burkhart

Wisconsin Power & Light Co. (WP&L) has announced that it will withdraw from its current regional reliability council, Mid-America Interconnected Network, Inc. (MAIN), effective December 31, 1997. According to president and chief executive officer of WPL Holdings Errol B.

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Price-cap Reforms Reflect Local Competition

Phillip S. Cross

Citing heightened competition and lower earnings in the state's local exchange telephone market, the California Public Utilities Commission (CPUC) has frozen price caps for local exchange carriers (LECs) for most noncompetitive local services, and has suspended the 5-percent "x-factor" services for an intermediate level of competition.

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ComEd Saves Taxes on Byron Plant

Lori A. Burkhart

The Illinois Property Tax Appeal Board has decided to cut taxes for Commonwealth Edison Co.'s (ComEd) Byron nuclear power plant. ComEd currently pays about $40 million in real estate taxes on the plant to Ogle County; the decision would lower the payments to $13.3 million. Ogle County will most likely appeal the decision, because certain local tax districts had planned on the revenue, and some have already spent the funds.

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LECs in Oregon to See Competition

Phillip S. Cross

The Oregon Public Utility Commission (PUC) has authorized three new telecommunications companies to provide local exchange service in competition with existing carriers U S WEST Communications, Inc. and GTE Northwest, Inc.

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