Sound bites from state and federal regulators.

Appliance Repair Business. Responding to complaints from unregulated providers, New York rules that natural gas LDCs must run their appliance repair services through a separate subsidiary. PSC terms its existing policies "anachronistic" and finds that subsidies for appliance repair services are inappropriate. Case 93-G-0804, April 4, 1997 (N.Y.P.S.C.).

DSM Program Design. Michigan appeals court says state PSC exceeded authority and "impermissibly interfered with management decisions" of Detroit Edison Co. when it modified a demand-side management plan submitted by the utility. The court says the commission has authority to authorize rates based on DSM program costs, but not to make managerial decisions. Ford Motor Co. v. Mich. PSC, 562 F.3d 224, Feb. 7, 1997 (Mich.App).

Gas Bypass Threat. California finds that threat of bypass is imminent and authorizes Southern California Gas Co. to enter a long-term transportation agreement at negotiated discount rates with Inland Paperboard and Packaging Inc., a large, noncore customer. SoCalGas had claimed that several new pipeline projects poised to enter the Los Angeles Basin were targeting the largest customers on its system. Application 96-12-038, Decision 97-03-005, March 7, 1997 (Cal.P.U.C.).

Storage Rate Design. Michigan PSC allows Washington 10 Storage Corp. to set up a schedule of cost-based rates for gas storage services in addition to its established market-based tariffed offerings. PSC approves two-part, cost-based rate, reflecting testimony that the cost of peaking service is "inherently higher than providing base load service." Case No. U-10424, April 24, 1997 (Mi.P.S.C.).

Service Quality Incentives. New York grants financial incentives to encourage Central Hudson Electric Co. to maintain current level of service quality for natural gas customers, and improve its record in honoring service appointments scheduled with its customers. For example, a failed appointment warrants a $20 credit to a customer's account. Case 95-G-1034, April 14, 1997 (N.Y.P.S.C.).

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