Consumers Power Co. has asked the Michigan Public Service Commission to approve a Special Competitive Service (SCS) rate to help retain industrial customers who threaten to leave the system. The SCS rate would be offered to customers who can obtain their power elsewhere and to new customers considering locating or expanding facilities in Michigan. "[A]pproval of this rate would grant Consumers Power the ability to negotiate special contracts with certain `at risk' large industrial customers which have competitive energy supply options," says Michael G.
Fortnightly Magazine - April 1 1995
The Illinois Commerce Commission (ICC) has approved special discount rate tariffs to help Illinois Power Co., an electric utility, meet ongoing competition from municipal electric utilities within its service territory.
Northern Border Pipeline Co. has filed for federal approval to extend its pipeline system 218 miles deeper into the Midwest, at a cost of $370 million. Sponsors say the project could be in service by November 1997.
The Kentucky Public Service Commission (PSC) has moved closer to full competition in the telecommunications intraLATA market by approving an implementation schedule, monitoring rules, and cost-recovery methods for intraLATA equal access. It had established the equal access, or "dialing parity," goal in a 1991 order on competition in the telephone market.
The Federal Energy Regulatory Commission (FERC) has accepted a settlement agreement between Massachusetts Electric Co. (ME), the Massachusetts Bay Transportation Authority (MBTA), and Boston Edison Co., which decides stranded investment and wheeling issues arising from ME's loss of MBTA as a retail customer (Docket No. ER94-129-000). The case arose in 1991, when the Massachusetts legislature designated MBTA a "domestic electric utility," allowing MBTA to leave ME. MBTA then signed a wholesale supply agreement with Boston Edison.
The California Public Utilities Commission (CPUC) has denied applications for rehearing and a request for a stay of its recent decision to expand intraLATA competition and redesign rates for local exchange carriers to prevent revenue losses and ensure the proper pricing of bundled competitive services. Re Alternative Regulatory Frameworks for Local Exchange Carriers, I.87-11-033; Application Nos. 85-01-034 et al., Decision 95-01-047, Jan 24., 1995 (Cal.P.U.C.). t
Phillip S. Cross is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.
We stand on the threshold of a new era in the electric services industry. I deliberately avoid the term "electric utility industry," because the future is not limited to the vertically integrated monopoly utility. Many utilities may already perceive the first cracks in their armor: nonutility generators (NUGs), self-generators, and energy service companies.
Competition is not in the industry's future; it is here now. Further, competition and market forces are not going to magically disappear.
Here we go again. Last year, the 103rd Congress failed to pass the much-promised and highly touted telecommunications reform legislation aimed at bringing the antiquated Communications Act of 1934 into the 21st century. Now it's up to the 104th Congress, and both parties have draft legislation ready to go.
In February, Sen.
A TRANSFORMING EVENT
Retail sales of gas and electricity run about $300 billion a year. The deregulation of energy production, wholesale logistics, and bulk consumption has brought competition to about 40 to 45 percent of the value chain from wellhead and busbar to the retail meter.
Louisville Gas and Electric Co. (LG&E) has filed a settlement offer on comparability of electric transmission, the result of negotiations with Federal Energy Regulatory Commission (FERC) staff since November. The first of its kind filed at the FERC, the settlement forms part of LG&E's comparable transmission service case, which involves the utility's network and point-to-point tariffs.