Fortnightly Magazine - July 15 1995

Two More States Launch Electric Restructuring

Utility regulators in Minnesota and Nevada have opened dockets on electric utility restructuring, citing (Minnesota) the Energy Policy Act of 1992 as having lifted barriers to wholesale competition, and seeking (Nevada) recommendations on alternative ratemaking.

The Minnesota Public Utilities Commission (PUC) said it would view open competition as "one part of a continuum of possible change," from traditional vertical integration to full deregulation.

Texas Opens Up Local Phone Service

Texas Gov. George Bush on May 26 signed into law a comprehensive bill, H.B. 2128, that makes sweeping changes in the way the state regulates telecommunications. The bill allows competitors to provide local exchange services by obtaining a certificate of operating authority (COA) or to resell local services through a service-provider certificate of operating authority. The COA is designed for facilities-based local exchange, and requires competitors to serve customers within a 27-square-mile area within 30 days of customer request.

DSM Phase-out Ordered for LDCs

The Massachusetts Department of Public Utilities has decided to phase-out existing demand-side management (DSM) incentives for the state's natural gas local distribution companies (LDCs). It said that any claims by LDCs for future recovery of lost margins and incentives will be examined in light of changes in the gas industry and the DSM marketplace. It added that the LDCs should propose a phase-out of their lost margin and DSM incentive programs in conjunction with proposals for incentive-based ratemaking or in their future DSM cases. Re Boston Gas Co., D.P.U. 94-15, Apr.

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