Citi

Pocketbook issues, like all others, tend to split along political lines.

Meeting on June 12, Sen. Frank Murkowski (R-Alaska) and members of the Senate Energy and Natural Resources Committee focused for the first time on what customers really think about choosing their own energy vendor.

Nevertheless, despite the shift toward pocketbook issues, and away from so-called "inside-the-Beltway" concerns, the testimony came largely from organized consumer groups, and it appeared split down political lines: urban vs. rural, private vs. public, business vs. residential.

The PJM Interconnection is what they call a "tight" power pool. As the Federal Energy Regulatory Commission has explained, tight power pools "extensively coordinate" their planning and operations, with central dispatch of generating plants. This coordination builds reliability--one of the long-term benefits, says the FERC, of a tight power pool.

Coordination also builds market power, however. And, as we all know from FERC Order 888, market power in transmission stands as "the single greatest impediment" to electricity competition.

The proposed merger of Northern States Power Co. and Wisconsin Energy Corp. to form Primergy has been called off because of delays by regulatory authorities at both the federal and state levels.

"After thorough consideration, we have mutually agreed to terminate our plans," said Richard A. Abdoo, Wisconsin Energy chair, president and CEO.

Citing concerns about gas price volatility, the New Jersey Board of Public Utilities has ruled that Public Service Electric and Gas Co. should maintain its existing annual fuel cost adjustment mechanism rather than shift to a monthly charge as originally proposed for its local gas distribution customers.

Under a settlement approved by the board, the LDC will have the option to impose the monthly charge on its general-service and large-volume customers.

Sound bites from state and federal regulators.

IntraLATA Toll Calling. North Carolina says newly certified competitive local exchange telephone carriers must apply for separate authority to provide intraLATA toll services, even though incumbent local carriers need not do so. Docket No. P-100, SUB 133, March 31, 1997 (N.C.U.C.).

Dialing Parity. Oregon PUC adopts policies on telephone dialing parity to allow all telephone users who choose alternate carriers to make calls without dialing extra numbers. Order No. 97-107, March 18, 1997 (Ore.P.U.C.).

Payphone Subsidies.

The Minnesota Public Utilities Commission has said it will postpone a decision for two months on whether to approve the proposed merger of Northern States Power Co. and Wisconsin Energy Corp. to form "Primergy."

The PUC may not decide the matter until as late as August. A sunset clause kicks in just three months after that time, which would allow the utilities to back out of the deal.

While directing PNM Gas Services ( a division of Public Service Company of New Mexico) to reduce rates for gas service, the New Mexico Public Utility Commission has redesigned residential rates to reinstate the once-discredited notion of recovering fixed costs in the commodity charge.

In the same case, the commission also rejected recovery of discount costs and other fees the utility paid and a proposal by the utility to "rebundle" sales and transportation rates by end-use class.

The PUC ordered PNM to reduce gas service rates $6.958 million.

Cities throughout the U.S. contemplating take over of a privately owned utility may be more likely to move forward now that the governor of New Mexico signed legislation that has made such a prospect easier in that state.

New Mexico Gov. Gary Johnson (R) on April 11 signed H.B. 1181, which allows the city of Las Cruces to condemn property owned by El Paso Electric Co., paving the way for the municipality to take over the local electric distribution system.

"We're very pleased," said Christopher Good, a spokesman for the city. Las Cruces plans to move forward from here, he added.

El Paso Energy Marketing hired Kathy Eisbrenner as senior v.p. Eisbrenner previously was with LG&E Natural Inc.

Cameron Raether, XENERGY senior consultant, was elected to the board of the Power Association of Northern California. Raether serves as chair on several boards and specializes in market evaluations for large electric and natural gas end users.

Robert G. Edwards was elected v.p. at Columbia Division of SCANA Energy Marketing Inc. Edwards joined SCANA in 1992 as a gas sales representative and has held various marketing positions.

The Brooklyn Union Gas Co. and The Long Island Lighting Co. have agreed with the Long Island Power Authority for LIPA to acquire all of the Long Island Lighting Co.'s electric transmission and distribution system, plus substantially all of its regulatory assets and its share of the Nine Mile Point 2 nuclear plant.

The transaction would take place through a stock purchase from the holding company, which Brooklyn Union and Long Island Lighting Co. will form.