New Jersey

New Jersey Approves Gas to Electric Pricing

The New Jersey Board of Public Utilities (BPU) has approved a change in the method used by Public Service Electric and Gas Co. to determine the price of gas paid by its electric division to its gas division for volumes needed to generate electricity. The new method adds two types of service beyond the current all-interruptible classification. The new "dedicated" volumes will only be subject to interruption at temperatures of 20 degrees or below. In addition, demand charges will be estimated based on monthly volumes rather than fixed historical annual volumes.

Death by Taxes: Gas Utilities Face a Crippling Disadvantage in Energy Marketing

Genuine competition - with greater efficiency and bona fide service improvements - is not unwelcome at most utilities. But spurious competition, with inconsistencies among players in the rules of the game, is a cause of frustration for utilities and customers alike.

Regulation in the natural gas industry is evolving rapidly. And on the electric side, the current flurry of activity is likely to draw on recent gas industry experience and move even faster.

SEC Calls for PUHCA Repeal

The Securities and Exchange Commission's Division of Investment Management has proposed repeal of the Public Utility Holding Company Act of 1935 (PUHCA), with consumer safeguards preserved and transferred to the Federal Energy Regulatory Commission (FERC). Safeguards would include state access to holding company books and records, federal audit authority, and oversight of affiliate transactions.

Mailbag

Salt River Project has appointed Capitol Hill veteran Renee Eastman manager of federal affairs. Eastman previously served four years as a representative for Sun Company, the nation's largest independent oil refiner and marketer.

Peter M. Schwolsky, former executive v.p. at New Jersey Resources Corp., has joined Columbia Gas System as senior v.p. He will become chief legal officer of the corporation later this year.

FERC Orders Power Pools to Transmit

For the first time, the Federal Energy Regulatory Commission (FERC) has directed a power pool, the Pennsylvania-New Jersey-Maryland (PJM) Power Pool, to provide electric transmission services to an electric utility, Duquesne Light Co. (Docket Nos. TX94-10-000 and TX94-8-000). It gave PJM 70 days to negotiate rates and terms with Duquesne, which had asked for transmission service to market excess capacity and energy. The FERC ordered the 11 members of the pool to negotiate jointly with Duquesne, and to charge comparable rates.

Take No Prisoneers? A Price-War Strategy for Electric Utilities

In talking to electric utility managers from across the country we have found that most believe direct access will have major repercussions on all aspects of their business by the end of the decade. Not surprisingly, there is an emerging consensus that revenues will drop rapidly as supply options grow for retail customers.

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.

People

Sherrie Rutherford was named v.p. and general counsel of NorAm Gas Transmission, the pipeline and gas marketing subsidiary of NorAm Energy Corp. She succeeds Dale Earwood, who was promoted to president, NorAm Field Services.

MCN Corp. named Thomas J. Connelly director, investor relations. He previously was director, project finance.

Michael R. Weber was named manager, environmental affairs, for CMS Generation Co., the independent power subsidiary of CMS Energy Corp.

Paul L.