Fortnightly Magazine - February 1 1995

Entering the Appliance Repair BusinessGordon Canning

Nearly 40 utilities now offer an appliance services program. Most take a similar approach: They cover appliances such as gas and water heaters, offer repair service only (no preventive maintenance), and charge a modest price ($50 to $60 per year). Bill inserts often carry the load for service promotion.

FERC Allows "Retroactive" Rates

The Federal Energy Regulatory Commission (FERC) has approved a settlement permitting potential refunds or surcharges by New England Power Co. (NEP) and Northeast Utilities Service Co. (NU) on deferred rate issues relating to transmission services provided on facilities collectively known as the "New Hampshire corridor" (Docket Nos. ER92-764-000 and ER92-766-000).

When NU merged with Public Service Co. of New Hampshire (PSNH), the FERC authorized PSNH to dispose of its jurisdictional facilities.

Forecasting New Gas Users

(SIDE SUBHEAD)

Each year hundreds of oil or electric customers call Boston Gas to ask about fuel-switching. What do they look for?A gas utility can boost sales only one way-by gaining new customers. And in today's slowly growing economy, conservation trends limit growth opportunities. The average household today uses two-thirds the energy of 15 years ago.

Financial News

SIDE SUBHEAD

With no need for new capital, utilities have lost political pressure, exposing the regulatory compact as an illusion.Recovery of stranded investment today marks the central issue in the debate over electric utility competition. Unfortunately, the utility argument in favor of recovery is flawed.

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