News Digest

Fortnightly Magazine - October 15 1998
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State PUCs

ISO GUIDELINES. Marking a contrast with California, but lining up with states in the Northeast, the Iowa Utilities Board has urged that independent system operators should have authority to order redispatch to help fulfill service requirements for electric transmission. That rule came as part of a set of principles issued by the board to guide the formation of ISOs in managing electric transmission systems and preventing the exercise of market power.

By urging redispatch authority, the Iowa board sided with ISO designs for PJM and New York, whereas in California, the ISO must rely on a secondary auction by scheduling coordinators to accomplish redispatch.

The Iowa guidelines also provide for recovery of approved transmission revenue requirements by owners of the transmission facilities. The board cautioned, however, that "future changes" in the electric industry may cause it to "rethink one or more of the principles." Docket No. NOI-95-1, July 27, 1998 (Iowa U.B.).

GAS RATE DESIGN. To counteract price volatility, the New Mexico Public Utility Commission directed PNM Gas Services to offer two pricing plans to residential gas customers that feature fixed-rate options: (1) a low, fixed customer fee with a higher, more-volatile volumetric rate, and (2) a higher, fixed charge and a lower, more-stable variable component. It rejected a call for a move back to a lower-priced, single-tiered rate design. Case No. 2762, Aug. 7, 1998 (N.M.P.U.C.).

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