Transmission

State PUCs

Gas Retail Rate Design. In a move toward equalizing rates of return between customer classes, the Oregon PUC authorized Northwest Natural Gas Co. to increase base rates by nearly $246,000, at the same time boosting residential rates by 1.3 percent but lowering rates for large commercial and industrial users. It set return on equity at 10.25 percent, finding the rate "consistent with the downward trend of ROEs authorized by other regulatory commissions." Order No. 99-697, Nov. 12, 1999 (Ore.P.U.C.).

Electric Restructuring.

The Electric Power Supply Association elected B. Kent Burton, senior vice president of policy and international government relations for Ogden Energy Group, its chair for 2000. Kenneth E. Randolph, senior vice president and general counsel for Dynegy Inc., was named EPSA's first vice chair, and Bill Mack, president and chief executive officer of Coastal Power Co., was named second vice chair.

EPSA also named Donn Salvosa manager of government affairs and Shannon Gordon manager of finance and administration.

A case study shows how today's typical tariffs can force some industrial electric customers to subsidize others.

There ought to be a better way for electric utilities to set prices for ancillary services - so that customers pay rates that fairly reflect the needs they impose on the bulk power system. However, while federal officials seem to agree with this point, so far they have done little to turn the idea to action.

Weighing the outlook for new plant investment in gas-fired power and related infrastructure.

The jury is still out on the type and size of additional energy infrastructure desirable in the Northeast United States, but enough data is in to make a few guarded observations.

The situation is fluid.

What we're not arguing about is important too.

More than 200 organizations and individuals have staked out positions in comments filed with the Federal Energy Regulatory Commission, in response to its proposed rulemaking on regional transmission organizations (RTOs).

The major debate in the reply briefs is on three issues.

Mandatory vs. Voluntary Participation? The FERC's proposed rulemaking relies on strong RTOs rising spontaneously from the primeval murk of the conflicting interests of the states and industry participants.

Mergers & Acquisitions

Joint Ventures. The Federal Trade Commission, in consultation with the Antitrust Division of the U.S. Department of Justice, issued draft antitrust guidelines for "collaborations among competitors" that will apply to a wide range of joint ventures and strategic alliances other than actual mergers.

Such collaborations would include R&D efforts, information sharing and joint efforts in marketing, distribution, sales or purchasing, plus various types of trade association activities. File No. 971201, Oct. 1, 1999 (F.T.C.), published at 64 Fed. Reg.

State PUCs

Electric Standard Offers. Connecticut OK'd a regulated standard offer distribution rate of 10.84 cents per kilowatt-hour for United Illuminating Co. The rate included subcomponent rates:

Gen. Shopping Credit 4.52 cents

T&D Regulated Service 3.89 cents

Systems Benefit Charge 0.17 cents

Compet. Transition Charge 1.91 cents

Conservation Funding 0.3 cents

Renewable Energy Funding 0.05 cents

The T&D charge was calculated without backing out unbundled retail transmission subject to FERC jurisdiction. Docket No. 99-03-35, Oct.

State PUCs

Gas Appliance Repair.

Mergers & Acquisitions

CP&L + Florida Progress. Carolina Power & Light announced Aug. 23 that it would purchase Florida Progress Corp. for $5.3 billion in a combination that would create the nation's ninth-largest utility in terms of generating capacity, with $6.7 billion in annual revenues and 2.5 million customers in three states. CP&L would pay a premium (between 16.5 percent and 21 percent) over the pre-announcement share price of FP stock.

California again is the proving ground. Analysts see DG as the biggest issue since the PUC first mapped its "vision" for retail competition.