Calendar of Events

Aug 04, 2014 to Aug 15, 2014 | Michigan State University, East Lansing, MI
Aug 11, 2014 to Aug 12, 2014 | New York, NY
Sep 08, 2014 to Sep 10, 2014 | Chicago, IL

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Illinois Contract Raises Wisconsin Ire

Lori A. Burkhart

A 10-year wholesale power contract between Wisconsin Electric Power Co. (WEP) and the City of Geneva, IL, is raising eyebrows in Wisconsin. The result of competitive bidding, the contract sets rates some 20 percent below what the city paid WEP under a 1985 contract. WEP will pay $1 million to Geneva for an electric substation.

Court Faults Commission on Rate Restructuring

Phillip S. Cross

The Appellate Court of Illinois (First District) has ruled that the Illinois Commerce Commission (ICC) failed to properly consider the effect on consumers when it approved a rate restructuring plan for Central Telephone Co. of Illinois, a telecommunications local exchange carrier (LEC). An ICC order from a base-rate proceeding had permitted the LEC to eliminate most of its flat-rate calling plans and replace them with usage-sensitive service offerings. The order also permitted a general shift of costs away from business users and onto the residential customer class.

States Consider Employee Compensation Costs

Phillip S. Cross

While authorizing Providence Gas Co., a natural gas local distribution company (LDC), to raise its rates by a total of $3.99 million, the Rhode Island Public Utilities Commission (PUC) reduced the LDC's proposed expense allowance for executive incentive compensation by 60 percent, to match the portion of a performance incentive award designed to reward shareholders. The PUC said that 40 percent of the

performance-based awards under the company's executive incentive payment rules were based on criteria related to cost of gas and operations and maintenance expense.

Entergy to Buy Australian Utility

Lori A. Burkhart

It looks like PacifiCorp will have a little competition down under. A $1.2-billion conditional bid for an Australian electric utility (em made by an Entergy subsidiary, Entergy Power Group (em has been accepted by the State of Victoria.

Saying "No" to Municipalization

James S. Lanard, and Glenn O. Steiger

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.

People

Susan F. Tierney, former assistant secretary for policy at the U.S. Department of Energy, has joined The Economics Resource Group, Inc. as a managing consultant.

UGI Corp. has hired William D. Katz as v.p.-corporate development. He succeeds R. Paul Grady, now v.p.-sales/

operations of UGI's AmeriGas Propane subsidiary.

Stephen D. Chesebro', Tenneco Energy's CEO, was promoted to chairman. Edward J. Casey, Jr. joins the company as president and COO.

Illinois Court Rejects Electric Anti-bypass Rates

Phillip S. Cross

An Illinois Appellate Court has reversed a ruling by the Illinois Commerce Commission (ICC) that had allowed Commonwealth Edison Co. to enter negotiated rate contracts with up to 25 large general-service customers to retain existing load. The ICC had ruled that the antibypass tariff would not conflict with state laws requiring filing and publication of utility rates, because it must contain a description of the pricing and service parameters used in negotiating the individual contracts.

Marketing & Competing

D. Michael Rappoport

When the Salt River Project (SRP) held a series of focus groups in 1994, one participant said he related to our products and services, and felt he received good value for his monthly payments. Unfortunately, a few questions later, we discovered that he did not live in our service area, his bill was higher than he thought, and he wasn't particularly pleased after all.

We were more than a little taken aback.

CAP Offers Plan to Cut LILCO Rates

Lori A. Burkhart

The Citizens Advisory Panel (CAP) has released its proposal to cut rates on Long Island by 20 percent, in response to New York Gov. George Pataki's call for the dissolution of the Long Island Lighting Co. (LILCO). Electric rates on Long Island are the second-highest in the nation.

The CAP plan would slash at least $1 billion from Shoreham debt, and refinance the remaining debt with bonds issued by the Long Island Power Authority (LIPA). CAP believes the $1-billion cut alone would reduce electric bills 10 percent.

Financial News

Annual Annual EPS

Close Close Percent 52-Wk 52-Wk Div Div Book P/E Last

Company Region 06/30/95 10/02/95 Change High Low Rate Yield Value Ratio 12 Mos.Electric UtilitiesAEP Company Inc. Midwest 35.13 36.13 2.85 36.50 30.50 2.40 6.64 22.68 14 2.63

Unicom Corp.

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