Fortnightly Magazine - February 15 1995

Pennsylvania Regulators Disagree on ROE Award

A recent rate order by the Pennsylvania Public Utilities Commission (PUC) granting West Penn Power Co. a $53.7-million increase has generated some disagreement between the state's utility commissioners on the issue of rate of return on equity (ROE). Although the PUC reduced the utility's proposed ROE from 12.5 to 11.5 percent, PUC chairman David W. Rolka and vice chairman Joseph Rhodes, Jr. both claimed the ROE was too high.

DRI/VP Still Under Fire

The interim consultant's report on the Dominion Resources/Virginia Power (DRI/VP) merger identifies problems with the holding company structure.

DRI/VP claim that the report's corporate structure recommendations conflict substantially with their settlement agreement, and appear to impose unique and extraordinary constraints on corporate governance.

V