LEC Gets Price-cap Plan and Service Penalty
While reducing rates by $5.7 million for Citizens Utility Co.
While reducing rates by $5.7 million for Citizens Utility Co.
The Virginia State Corporation Commission (SCC) has stepped into the middle of a dispute between Virginia Electric and Power Co., an electric utility, and the City of Falls Church, VA. The city had planned to displace the utility as the supplier of electricity for city residents by purchasing a minimum amount of facilities from the utility and soliciting bids for power supplies outside the local system.
Despite a 1992 decision to add a new area code to prevent the projected exhaustion of telephone numbers, the Maryland Public Service Commission (PSC) has approved a plan to provide additional numbering capacity within exchanges by requiring 10-digit dialing for all customers. Future telephone lines would be assigned a new area code under the approved plan, but no existing customers would be required to change their current telephone numbers.
The Arkansas Public Service Commission (PSC) has approved a move to full competition in the telecommunication intraLATA toll market. The PSC has concluded that its earlier concerns regarding uneconomic duplication of facilities and erosion of revenues for the state's local exchange carriers (LECs) no longer justified keeping the market closed. According to the PSC, competition among interexchange carriers (IXCs) for interLATA traffic had benefited consumers by producing over 100 certificated carriers competing in price and packaging of services.
Is One Merger as Good as Another?
In late November, the Federal Energy Regulatory Commission (FERC) put off immediate approval of the proposed merger between The Washington Water Power Co. and Sierra Pacific Resources (to form "Altus"), and set the case for hearing. The reason? The FERC doubted whether the merger would achieve operational efficiencies between the two noncontiguous utilities.
Management expert Peter F. Drucker has observed that our society has entered a "post-capitalist" stage in which economic activity is organized around information: "The basic economic resource ... is no longer 'capital' nor 'natural resources'...
To listen to some, EDI stands for "Everybody's Doing It." But there's more to it than that. The natural gas market is not simply about electronic bulletin boards (EBBs) or electronic data interchange (EDI), which reconciles potentially inconsistent data, protocols, and trading customs among pipelines, shippers, distributors, and end users. Instead, it should be about solutions (em solutions that work across regions, across enterprises.
EDI is tough.
The deregulated power market will feature large numbers of buyers and sellers. Buyers will worry that prices will rise unexpectedly above current levels; sellers will worry that prices will fall unexpectedly. Some will be interested in fixed-price forward deals that protect them from these risks.
On November 7, 1995, voters in Aberdeen, NJ, went to the polls to elect local and state officials. Also on the ballot were public questions (em including one asking Aberdeen residents whether the township should build or acquire electric transmission and distribution facilities. Eighty-six percent of the voters nixed the idea. What follows is a case study of how the issue got on the ballot and how the local utility defeated the effort. The story reveals what it takes to defeat a municipalization drive: support from municipal government, the public, and your union.
Anchor Glass Tries to Shake JCP&L Stranglehold
By Joseph F. Schuler, Jr.
Why assume that a city or town
can't run a power plant?
It wasn't a demand for a $2-million rate cut. It was a request for a rate in line with neighboring New Jersey utilities.
That's how Walter J.