Calendar of Events

Sep 08, 2014 to Sep 10, 2014 | Chicago, IL
Sep 29, 2014 to Oct 03, 2014 | Michigan State University, Lansing MI
Oct 01, 2014 to Oct 03, 2014 | Washington, DC

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Public Utilities Reports

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Citi

Success is in the Details: Rationalize, Organize, and Plan

Russell E. Christiansen

Any executive who has gone through a merger, however well planned and executed, knows that it is a challenging process. Two essential ingredients are required before merger discussions can proceed from the initial "what if" stage to agreement on all critical and strategic issues. These ingredients must be developed by the chief executive officers through face-to-face meetings and a combination of intuitive response as well as specific examination of strategic issues.

People

Philip R. Sharp, former 10-term congressman from Indiana, has been named director of the Institute of Politics at Harvard University's John F. Kennedy School of Government. Sharp assumes the position on July 1, succeeding Charles Royer, former mayor of Seattle, WA.

NICOR Inc. has elected Thomas L. Fisher, currently president and COO, to the additional position of CEO. Fisher will continue as president and CEO of Northern Illinois Gas Co., the company's largest subsidiary.

Charles W.

Rate Base Adjustments Not Needed in Stable Economy

Phillip S. Cross

Citing a "relatively stable economy," the Utah Public Service Commission (PSC) has reaffirmed its preference for a historical test period in setting utility rates. It rejected a proposal by Mountain Fuel Supply Co., a natural gas local distribution company (LDC), to employ a projected test year in its current rate case. The LDC argued that the adjusted expense and revenue figures would better reflect customer growth as well as the effects of a newly established early retirement program.

State Court Overturns Coal-tar Cost-sharing Plan

Phillip S. Cross

The Illinois Supreme Court has overturned a ruling by state regulators denying recovery by natural gas local distribution companies (LDCs) of the carrying costs on the unamortized balance of their coal-tar cleanup costs. The Illinois Commerce Commission (ICC) had ruled that the utilities could recover the costs of statutorily mandated coal-tar cleanup expenses from ratepayers over a five-year amortization period.

Perspective

Thomas J. Sloan

John Huey (Fortune, Feb. 21, 1994) suggests that some corporate leaders resemble candidates running for office. Cynically, this conjures an image of the slick campaigner (em a blue suit, a thick head of hair, makeup artists, acting class, and speech coaches. Yet, Mr. Huey raises an issue that cannot be ignored. How can public utilities learn to communicate better?

I've worked as a communications director at a major investor-owned electric company.

Will IOUs Unbundle by 2000

Bruce W. Radford

Forty percent of 42 state public utility commissions (PUCs) expect electric utilities to unbundle generation from transmission and distribution within the next one to five years, according to a survey conducted for the Electric Generation Association (EGA) by Boston Pacific Co.

"Merger of Equals" Primes NSP, WEPCO for Competition

Bruce W. Radford

Northern States Power Co. (NSP) and Wisconsin Energy Corp. (parent company of Wisconsin Electric Power Co., WEPCO, and Wisconsin Natural Gas Co.), have announced plans to merge, a move NSP says will create the tenth-largest investor-owned utility in the United States, based on market capitalization. The new company (em Primergy Corp. (em would operate as a registered public utility holding company and parent company of NSP and WEPCO, with the gas subsidiary perhaps spun off to comply with the Holding Company Act.

Financial News

Annual Annual EPS

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

Company Region 09/30/94 12/30/94 Change High Low Rate Yield Value Ratio 12 Mos. Electric Utilities AEP Company Inc. Midwest 32.88 31.75 3.42 35.75 27.25 2.40 7.56 22.68 12 2.71

Unicom Corp.

FERC to Flesh Out Comparability

Lori A. Burkhart

The Federal Energy Regulatory Commission (FERC) has set for hearing issues related to a proposed, open-access transmission tariff for point-to-point service in Citizens Utilities Co.'s (CU) Arizona service territory. It also approved CU's agreement requiring a transmission customer, Aha Macav Power Systems, Inc., to pay a $190,000 contribution in aid of construction (CIAC) to interconnect to CU's grid (Docket No.

ComEd Plants Win Rate Base Treatment

Phillip S. Cross

The Illinois Commerce Commission (ICC) has approved a $303.2-million rate increase for Commonwealth Edison Co. In approving a rate of return on equity (ROE) allowance of 12.28 percent, the ICC chose an ROE presentation that "equally weighs the quarterly DCF and risk-premium based results." The increase reflects the ICC's finding that the company's Byron 2 and Braidwood 1 & 2 nuclear generating facilities are fully used and useful and eligible for rate recovery.

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