DC

The Kansas State Corporation Commission (SCC) has authorized Western Resources, Inc., a local distribution company (LDC), to raise base rates by $33.85 million, but to refund to ratepayers a portion of its gain on the sale of distribution assets sold to a municipality.

Citing guidelines handed down by the state Court of Appeals in a 1980 ruling (5 Kan App.2d 514), the SCC approved a sharing mechanism that allocates ratepayers 44.4 percent of the gain over a one-year period.

Sound bites from state and federal regulators.

LDC Certificates. North Carolina assigns currently unfranchised natural gas service territories. Awards certificates of public convenience and necessity. Docket No. G-100, Sub 69, Aug. 16, 1996 (N.C.U.C. 1996).

Externality Benefits. Utility should not include "net social benefits" when calculating shareholder incentive award. Docket No. G-011/M-95-1372, Aug. 1, 1996 (Minn.P.U.C.).

Area Code Shortage.

Competition

at the Meter: Lessons

From the U.K.Metering lies at the heart of electric competition, but may work best as a "natural" monopoly controlled by the distribution utility.Metering represents one of the more complex issues in retail electric competition (em one that suffers from major misperceptions.

The Kentucky Public Service Commission (PSC) has approved two gas-cost incentive programs proposed by Columbia Gas of Kentucky, Inc., a natural gas local distribution company (LDC). Under the first phase of the experiment, the LDC will retain 35 percent of its offsystem sales, returning 65 percent to ratepayers. Phase two allocates to ratepayers all capacity-release revenues received by the company up to a benchmark level.

There's more to meeting marketing challenges than first meets the eye.

Imagine you've just taken over as chief executive officer (CEO) of a $1-billion gas utility in a major metropolitan market.

Mid-American Power, LLC has bought a 53-Mw, coal-fired generating plant, put it on the power grid, and plans to convert the facility into a 300-Mw, gas-fired, combined-cycle plant. Mid-American bought the E.J. Stoneman Station in Cassville, WI, from Dairyland Power Cooperative after almost two years of negotiations. The companies making up Mid-American include Power Systems, Ltd., Burns & McDonnell Engineering, Inc., and WPS-Power Development, Inc. The plant supplies energy to two regional utilities.

Monopoly rents? Not in the short run. The real enemy is a price war, fueled by indifference to stranded costs. And when that happens, antitrust laws won't offer much help.Competition has formally begun in the electric service industry. The Federal Energy Regulatory Commission (FERC) has issued Order 888, giving generators access to wholesale loads throughout the nation.

Whether you're a utility commissioner in Wyoming or Georgia, a v.p. for a leading marketer, or a commission division director in New Jersey, you share a common activity: learning by the seat of your pants about deregulating gas markets. In this gas forum, PUBLIC UTILITIES FORTNIGHTLY highlights developments across the nation.

The Ohio Public Utilities Commission (PUC) has opened a docket to examine regulatory reform of the state's natural gas local distribution companies (LDCs), responding to a new state law (Amended Substitute House Bill 476) signed June 18 by Ohio Gov. George Voinovich. It directed its staff and interested parties to develop ideas for alternative regulatory plans and for LDCs to enter the "commodity sales" market.

Converging Markets:

The First REAL Electric/Gas MergerEnron's bid

to acquire Portland General heralds a new phase

in utility competition.

Why the Holding Company Act doesn't matter.

By Charles M. Studness

The merger agreement between Enron and Portland General Corp. has reshuffled the electric restructuring deck. It makes electric utilities takeover targets for outside suitors after 60 years of peaceful immunity.