The Ohio Public Utilities Commission (PUC) has proposed regulations to allow electric utilities to use fuel-cost clauses to recover gains or losses from trading Clean Air Act emission allowances....
Illinois Approves Retail Wheeling Trials
The Illinois Commerce Commission (ICC) has OK'd experimental wheeling programs advanced by two of the state's major investor-owned utilities, Illinois Power Co. and Central Illinois Light Co. Both plans focus on large industrial customers, but Central Illinois would also allow direct access for commercial and residential customers over a five-year period in five defined test areas (called "open access sites"). The plans offer unbundled transmission rates based on embedded-cost
tariffs filed at the Federal Energy Regulatory Commission.
Each utility anticipates revenues losses (borne by shareholders):
s Illinois Power will permit 21 of its largest industrial customers to buy from 2 to 10 megawatts (Mw) each from other suppliers, up to a total of 50 Mw. It estimates a net annual revenue loss of $3.1 to $7.5 million from load-shifting. It also agreed to conduct a cooperative feasibility study for residential and commercial direct access.
s Central Illinois will allow its eight largest industrial customers to seek offsystem supplies up to a total of 50 Mw for a period of two years. It expects a potential loss of up to $3.1 to $4 million per year in net income from reduced purchases by industrial customers.
The ICC denied calls by Commonwealth Edison Co. to require Central Illinois to identify competitive opportunities. Commonwealth had argued that regulatory barriers, such as taxes and fees paid only by instate utilities, might afford an unfair advantage to independent power producers and municipal or out-of-state utilities. The ICC acknowledged that "all participants will not be operating on a level playing field" during the early stages of retail competition. Re Central Ill. Light Co., No. 95-0435, Mar. 13, 1996 (Ill.C.C.); Re Ill. Pwr. Co., 95-0494, Mar. 13, 1996 (Ill.C.C.).
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