Fortnightly Magazine - June 15 1995

California Moves to Open Local Market

The California PUC on April 26 issued interim rules that could allow local telephone competition in the Pacific Bell and GTE-California service areas as early as June. The rules would manage competition between local carriers (CLCs) and franchised local telcos. Under the rules, CLCs could offer individual service components (such as subscriber loops, line side ports, signaling links, signal transfer points, service control points, and dedicated channel network access connections) or choose to handle the entire phone call.

State Court Overturns Coal-tar Cost-sharing Plan

The Illinois Supreme Court has overturned a ruling by state regulators denying recovery by natural gas local distribution companies (LDCs) of the carrying costs on the unamortized balance of their coal-tar cleanup costs. The Illinois Commerce Commission (ICC) had ruled that the utilities could recover the costs of statutorily mandated coal-tar cleanup expenses from ratepayers over a five-year amortization period.

Columbia Gas FIles Bankruptcy Plans

The Columbia Gas System, Inc., and its principal pipeline subsidiary, Columbia Gas Transmission Corp. (CGT) have filed separate reorganization plans with the U.S. Bankruptcy Court for the District of Delaware.

The parent company's plan proposes total distributions of about $3.6 billion to creditors, including $2.3 billion to pay prepetition debt, with $1.1 billion in interest.

Washington Resolves Pay Phone Price Squeeze

The Washington Utilities and Transportation Commission (UTC) has ordered

U S West Communications, Inc., a local exchange carrier (LEC) to reduce the price of "essential monopoly" services it provides its payphone competitors to cure a price squeeze in the public payphone services market. Using an "imputation test," the UTC found that the cost of a local telephone call was greater than the LEC's current levy of $0.25 at its public pay stations.

Texas Court Ruling Opens Door on Tax Cost Recovery

Texas Utilities Electric Co. and Gulf States Utilities are looking to an April 13 Texas Supreme Court decision (involving GTE-Southwest) that says the state PUC need not employ the actual taxes paid method in setting utility rates. Gulf States will now amend its appeal of a March 20 Texas PUC order forcing a $52.9-million rate reduction, which had included a $25.8-million actual taxes paid component. Texas Utilities had put its faith in legislative relief, but saw its hopes dashed in late April when a Texas state senate committee defeated a proposal to take up the matter.

Electric Utility Gas Supplies a Concern in Pennsylvania

To prevent a repeat of the energy emergency experienced in the state in January 1994, the Pennsylvania Public Utilities Commission (PUC) has ordered electric utilities to negotiate with their power pools, nonutility generators, and supplier utilities outside the state regarding fuel-supply reliability for plant identified as available to meet winter peak. The PUC suggested that the utilities revise rules that allow generation fueled solely by natural gas and delivered under interruptible transportation contracts to count as part of reserve capacity.

Va. Power Can Test Real-time, But Not on Site

The Virginia commission on April 20 authorized Virginia Electric and Power Co. (VP) to implement a five-year, experimental real-time pricing rate (RTP), but denied a proposal to custom-build dispersed generating facilities at customer sites.

The RTP will allow VP to set rates for large industrial customers (over 10,000 Kw) based in part on the actual hourly cost of generating electricity (Case No. PUE940080). The pilot program allows VP to experiment with market-based pricing by offering industrial users the opportunity to directly control their energy costs.

Ohio Allows Choice of Backup Gas Supply

The Ohio Public Utilities Commission (PUC) has modified its natural gas transportation guidelines to allow "human needs customers" the opportunity to select alternative suppliers of backup commodity supplies. The PUC found the change had sufficient merit to enact without experimental testing and that quick authorization was necessary to develop operational details and the necessary arrangements between customers and suppliers prior to the next heating season.

Niagara Mohawk Prepares for Battle

On May 11 in the U.S. District Court for the Northern District of New York, Niagara Mohawk Power Corp. (NMP) filed suit against the Federal Energy Regulatory Commission (FERC) and the New York Public Service Commission (PSC), seeking relief from what it terms "mandated, above-market electricity purchases" from unregulated generators.