Sound bites from state and federal regulators.

Green Pricing. Michigan allows Detroit Edison Co. to expand its existing experimental photovoltaic "green pricing" program, finding current solar capacity fully subscribed, with a waiting list for new participants. Case No. U-10893, March 27 1997 (Mi.P.S.C.).

NUG Contracts. Virginia permits Delmarva Power & Light Co. to amend purchased power contract with Star Enterprises, its principal nonutility supplier, by suspending capacity supply and payment obligations through May 31, 2000. Case No.

The Virginia State

Corporation Commission has authorized Delmarva Power and Light Co. to close two experimental load-management tariffs to new customers.

Nevertheless, the utility said it would continue to call upon existing program participants to mitigate system emergencies throughout the year.

One program, established in 1988, offered billing credits to customers who agreed to establish a firm service level and then curtail load to that level at the company's request during peak management billing months of June through October.

Professor Shepherd sees selective price cutting as anti-competitive, but even a monopolist should be allowed to compete on price.

As the electric industry deregulates, state public utility commissions are asked increasingly to allow the local utility to offer price discounts to large-load customers who might otherwise turn to other sellers. So far, nearly all the PUCs faced with this issue have agreed that such discounts are beneficial: They help retain large-load customers, who help pay the utility's fixed costs.

Peabody COALSALES Co. agreed to provide Minnesota Power as much as 2.5 million tons of low-sulphur coal each year. Coal will be supplied by Peabody affiliate Big Sky Coal Co. Big Sky's contract with the power company ends in May; the new agreement runs through 1999. Terms of the deal weren't released.

The Georgia Public Service Commission begins a series of workshops on electric industry restructuring next month. The workshops will examine national efforts, consumer ramifications and environmental and energy efficiency issues. Stranded costs also will be targeted.

Annual Annual EPS

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

Company Region 06/28/96 09/30/96 Change High Low Rate Yield Value Ratio 12 Mos.Electric Utilities

AEP Company Inc. Midwest 42.63 40.63 -4.69 44.75 35.13 2.40 5.91 22.68 13 3.10

Unicom Corp.

Ohio Edison Company and Centerior Energy Corp. announced an agreement September 17 on a tax-free, stock-for-stock merger to form a new holding company, FirstEnergy Corp., worth about $4.8 billion, based on stock prices that closed several days earlier.

The news came a month after two other merger deals were announced in mid-August: 1) Atlantic Energy, Inc. and Delmarva Power & Light Co. ($2.2 billion), and 2) Houston Industries Inc. and NorAm Energy Corp. ($3.8 billion). NorAm is the nation's third-largest U.S. natural gas utility.

The Pennsylvania Public Utility Commission (PUC) has authorized Duquesne Light Co. to expand its economic development rate initiatives to include small industrial customers. The new rate rider provides a five-year discount on demand charges on a maximum of 100 kilowatts (Kw) for new or existing customers smaller than 100 Kw. If the utility's service territory is to recover from the steel industry's devastating downturn, the PUC argued, Duquesne must be able to offer a competitive rate to keep industrial operations of all sizes.

I was amused by your "Headlines" item on the Reason Foundation's study calling for privatization of TVA and the power marketing administrations due to government subsidization and poor management (May 15, 1996, p. 16). If those were the two overriding issues, one could argue in favor of swapping segments and doing something different with the segment that costs the government the most.

Annual Annual EPS

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

Company Region 12/29/95 03/29/96 Change High Low Rate Yield Value Ratio 12 Mos.

Electric Utilities

AEP Company Inc.