Noting the growing global demand for new sources of energy, Congress tailored the Energy Policy Act of 1992 (EPAct) to make U.S. public utility holding companies more competitive abroad. First, it eased the Securities and Exchange Commission review of U.S. investment in foreign energy facilities. Second, it sought to expand U.S. participation in foreign energy-related projects to include U.S. technology as well as investment dollars.

With no need for new capital, utilities have lost political pressure, exposing the regulatory compact as an illusion.Recovery of stranded investment today marks the central issue in the debate over electric utility competition. Unfortunately, the utility argument in favor of recovery is flawed.

The Federal Energy Regulatory Commission (FERC) has approved a settlement permitting potential refunds or surcharges by New England Power Co. (NEP) and Northeast Utilities Service Co. (NU) on deferred rate issues relating to transmission services provided on facilities collectively known as the "New Hampshire corridor" (Docket Nos. ER92-764-000 and ER92-766-000).

When NU merged with Public Service Co. of New Hampshire (PSNH), the FERC authorized PSNH to dispose of its jurisdictional facilities.

The Environmental Protection Agency (EPA) has approved a plan by 12 northeastern states and the District of Columbia (the Ozone Transport Commission (OTC)) to improve air quality under the Clean Air Act. The plan allows the OTC to establish an alternative-fuel vehicle program fashioned after California's, beginning in model year 1999, or to choose other measures that would provide equivalent pollution reductions. The OTC plan envisions the sale of certain advanced technology vehicles that reduce pollution by more than 70 percent.

MAPP wants to apply a distance-based transmission charge for wholesale coordination transactions of four years or less between pool members.

The Federal Energy Regulatory Commission (FERC) has adopted a policy statement on hydroelectric plant decommissioning, claiming authority to deny new project licenses when existing licenses expire and to order owners to remove a dam during the relicensing process. These measures would only be applied if the FERC concludes that a project, no matter how many conditions were imposed, could no longer meet the comprehensive development standard of the Federal Power Act (FPA) (Docket No. RM93-23-000).

The statement was one of three hydroelectric orders considered as a group.

The fledgling industry is also staking out its regulatory territory. Notably, on December 14, the FERC ordered the Tennessee Valley Authority (TVA) to provide nonfirm transmission service to AES Power Inc.

Under new IRS guidelines (Revenue Procedure 95-10) issued January 17, 1995, a foreign company qualifying as a partnership must have at least two shareholders.