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Fortnightly Magazine - February 1 1997

unless we feel that stranded costs are significant."

But, when questioned, Rickey acknowledged that a customer's decision to build a cogeneration facility and go off line could still trigger the law. "The effect would be the same," he said. Other parties stressed this potential conflict with the Public Utility Regulatory Policies Act as playing a major role in their decision to sue. (Note: Alabama Power is building a cogen plant for Olin Corp., but all the power will go to the grid.)

No one has tested the new law yet, but the issue is hot. Adds Greg Elam: "From what I understand, they [Alabama Power] were pretty upset when we filed this suit."



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