Fortnightly Magazine - April 15 1995

Mass. Utilities Settle Stranded Investment Issues

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.

California Denies Rehearing on IntraLATA Competition

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.

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Perspective

Despite all the talk, despite keen interest in certain industry sectors, and despite federal legislation, increased competition in the electric power industry is far from certain. Unlike other deregulated industries, electric power is primarily regulated by state public utility commissions (PUCs) (em not by a federal regulatory agency. The debate over the values and benefits of competition as opposed to regulation will have to take place over and over again.

Telecom Reform: New Congress, New Bill

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.

Louisville G&E Settles on Comparability

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.

FERC Investigates Gas Transportation Pricing

The Federal Energy Regulatory Commission (FERC) has asked for comments on alternatives to traditional cost-of-service pricing for interstate natural gas pipeline transportation rates (Docket No. RM95-6-000). In response to many requests from pipeline companies to approve rates based on other pricing methods, some cost-based and some not, the FERC wants to develop a framework for analyzing alternative proposals.

The Triumph of Markets in Natural Gas

During the last decade, the natural gas industry in the United States has been transformed from a heavily regulated business to one facing competitive markets. This transformation grew out of the failure of regulation; regulators, suppliers, pipelines, and customers all played a part. It continues today as the industry restructures and builds new institutions.A series of regulatory crises forced deregulation in stages: First, wellhead prices; second, gas contracts; and finally, pipeline transportation.

Marketers Demand Generic Comparability

Six major independent power marketers, calling themselves the Coalition for a Competitive Electric Market, have asked the Federal Energy Regulatory Commission (FERC) to begin broad-based, competitive reforms of the nation's electric service industry by winter 1996-97. Ultimately, they want the FERC to force all electric utilities that own transmission wires to allow marketers and other transmission-dependent power sellers and buyers to use their lines on a comparable basis.

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