Citi

SIDE SUBHEAD

Everyone talks about them.

Citing an excessive commitment to increasingly expensive purchased-power contracts, the Vermont Public Service Board (PSB) has reduced allowed rate of return on equity by 75 basis points. In setting rates for Central Vermont Public Service Corp., the PSB explained that ratepayers should not bear all of the costs associated with 1) excessive power commitments; 2) a failure to fully explore return sales opportunities; and 3) inefficient energy-efficiency programs.

Citizens Utilities Co. is continuing its aggressive expansion into the telecommunications business with an agreement to buy $292 million of telephone and cable television assets from Alltel Corp. However, the deal places the company's credit rating under increasing pressure.

Citizens will buy 109,000 telephone access lines in eight states, and acquire operations serving 7,000 cable television customers in four states. Alltel is a telecommunications and information services company based in Little Rock, AK.

We begin the new year with a recap of the major rulings issued last year by state public utility commissions (PUCs).

Electricity took center stage as state commissioners began in earnest to examine rising competition in the power generation market. The seemingly endless number of privately sponsored seminars, conferences, and reports on the issue might suggest that regulators are following rather than leading on policy.