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Fortnightly Magazine - August 1996

IPP Fights Utility Curtailment

Lori A. Burkhart

A federal judge has dismissed an antitrust lawsuit brought against Pennsylvania Power & Light Co. (PPL) in 1995 by Schuylkill Energy Resources, Inc. (SER), an independent power producer. SER alleged that PPL's curtailment of electrical output from SER during "minimum generation emergencies" on the regional power pool violated federal antitrust laws.

[A minimum generation emergency is declared by the pool when low amounts of electricity are being used by customers.

Ohio Proposes Electricity Aggregation Pilot

Phillip S. Cross

The Ohio Public Utilities Commission (PUC) has proposed a set of guidelines for "conjunctive electric service" offerings. (Conjunctive service is described as the aggregation of service provided at different locations for cost-of-service, rate design, rate eligibility, and billing

purposes.)

The proposed guidelines are intended to facilitate a two-year pilot program under the PUC's roundtable on competition in the electric industry.

KCP&L, UtiliCorp Fight Hostile Takeover

Lori A. Burkhart

Kansas City Power & Light Co. (KCPL) and UtiliCorp United Inc. (UU), which announced plans to merge on January 22, have amended their merger agreement in response to a hostile takeover attempt by Western Resources, Inc. The revised terms create a new KCPL subsidiary, which would be merged into UU. The resulting company would then be merged with KCPL to form the combined company. UU shareholders would receive one share in the merged company for each UU share held. KCPL shareholders would continue to hold their existing KCPL shares.

Penn. Upholds Gas-cost Incentive Program

Phillip S. Cross

The Pennsylvania Commonwealth Court has upheld a ruling by the state Public Utility Commission (PUC) implementing a three-year, performance-based, gas-cost incentive program for Columbia Gas of Pennsylvania, Inc., a local distribution company (LDC). The program compares LDC spot-market purchases to the New York Mercantile Exchange (NYMEX) average, sharing any savings between the company and ratepayers. The court rejected allegations that state law forbids recovery in excess of prudently incurred actual costs.

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