Sound bites from state and federal regulators.
Primergy Merger. Michigan regulators have OK'd the merger between Wisconsin Electric Power Co. and Northern States Power Co. The settlement assumes about 2 percent in cost savings on combined Michigan revenues, and imposes a four-year moratorium on rate hikes. Case No. U-10913, April 10, 1996 (Mich.P.S.C.).
Gas Pipeline Certification. Michigan certifies Thunder Bay Pipeline Co., L.L.C. to construct and operate a 47-mile natural gas pipeline in northern Michigan, at transport rates up to 4.44 cents per Mcf, denying a competing plan by Spartan Intrastate Pipeline System, which had raised antitrust concerns about Thunder Bay project ownership by CMS Energy Corp. and Michigan Consolidated Gas Co., both local distributors. Case Nos. U-10782 et al., April 10, 1996 (Mich.P.S.C.).
Electric Restructuring. North Carolina says it will focus on four areas in electric utility restructuring: 1) reliability and regional planning, 2) obligation to serve, 3) stranded costs, and 4) ancillary costs of providing service in a competitive market. Docket No. E-100, Sub 77, April 3, 1996 (N.C.U.C.).
Gas Overrun Penalties. Pennsylvania court affirms state PUC order requiring UGI Utilities, Inc. to cut purchased-gas cost rates for firm service to reflect overrun penalties paid by interruptible (IT) customers that failed to curtail use as required. Penalties are deemed gas-cost items, since firm customers bear risks from IT overruns. No. 25 C.D. 1995, March 14, 1996 (Pa.Commw.Ct.).