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Fortnightly Magazine - May 1 1995

Resources West Merger Promises Big Savings

Sierra Pacific Resources and The Washington Water Power Co. have filed a report at the Nevada Public Service Commission on their proposed merger to form Resources West Energy (RWE), estimating a combined savings of $449 million over the next 10 years. As a result, the utilities propose to freeze rates until at least 2000, except for one limited price increase in Nevada in 1997 and selected adjustments for energy supplies or extenuating circumstances.

About 42 percent of the savings will result from consolidation of duplicate functions and reductions in the workforce.

Byline: 
Lori A. Burkhart
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Perspective

How do American electric utilities differ from water companies, telephone companies, airlines, insurance firms, food processors, newspapers, steel mills, and other industries in the United States? "They produce electricity and the others don't," you answer. Maybe, but the others can produce electricity, too, if they want to.

Byline: 
Leonard S. Hyman
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Marketing & Competing

With the Clean Air Act Amendments of 1990 (CAAA) come many complex decisions for electric utilities. By now the majority of utilities have decided how they will comply with the clean air guidelines and acid rain program limits, at least for Phase I. But for those utilities that have selected coal switching as the preferred method of complying with the law, the task gets more complicated. Burn expensive low-sulfur coal and bank or sell allowances? Or burn just enough low-sulfur coal to meet the rules, and no more?

Byline: 
David A. Spainhoward and David E. Schultz
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MFS Asks FCC to Open the Local Loop

MFS Communications Co. (MFS) has petitioned the Federal Communications Commission (FCC) to order monopoly local exchange carriers (LECs) to open access to the "local loop" for competitive telephone companies at a cost-based rate. The MFS "Open Loop Initiative" seeks to speed development of local telephone competition and to provide a choice of local carriers.

The local loop is that part of the local telephone network that physically connects the customer's premises to the LEC central office.

Byline: 
Lori A. Burkhart
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Illinois Avoided Cost Statute in Line with PURPA

The Federal Energy Regulatory Commission (FERC) has ruled that an Illinois statute did not require rates above avoided cost for wholesale sales by qualifying facilities (QFs), and so did not violate the Public Utility Regulatory Policies Act (PURPA) (Docket No. EL95-27-000).

The statute at issue requires a utility to buy power from qualifying solid-waste energy facilities at the utility's retail rate. But the statute includes an offsetting monthly tax credit, which prevents a utility from paying more than its avoided costs.

Byline: 
Lori A. Burkhart
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FERC to Flesh Out Comparability

The Federal Energy Regulatory Commission (FERC) has set for hearing issues related to a proposed, open-access transmission tariff for point-to-point service in Citizens Utilities Co.'s (CU) Arizona service territory. It also approved CU's agreement requiring a transmission customer, Aha Macav Power Systems, Inc., to pay a $190,000 contribution in aid of construction (CIAC) to interconnect to CU's grid (Docket No.

Byline: 
Lori A. Burkhart
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