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Fortnightly Magazine - October 1 1995


Bruce W. Radford

On the morning after Labor Day, back from one last beach fling, Wall Street Journal assistant features editor Max Boot published an editorial castigating California Gov. Pete Wilson for his alleged failure to "take a stand" on electric deregulation in the Golden State ("California's Governor isn't Plugged into Deregulation Debate," Sept. 5, 1995, p. A15). "There's a leadership vacuum here," writes Boot. "Governor Wilson is partly responsible for the problem ... he appointed Mr. Fessler and the other PUC members.

Potomac Electric: Win Some, Lose Some

Phillip S. Cross

The District of Columbia Public Service Commission (PSC)

has allowed Potomac Electric Power Co. rate recovery of costs associated with the development of electric vehicles for fleet use under alternate-fuel vehicle requirements imposed under the Energy Policy Act of 1992. The PSC rejected a request by the Greater Washington Petroleum Committee, an oil industry trade group, to deny funding because electric vehicle technology had not evolved to a point that promotes consumer acceptance of a competitively priced vehicle.


The Interstate Natural Gas Association has appointed Terry D. Boss v.p. of environment, safety, and operations. Boss replaces Theodore L. Kinne, who has retired.

R. Paul Grady has resigned as v.p. of corporate development with UGI Corp., a holding company with utility and propane marketing subsidiaries, to become v.p. of sales and operations at its wholly-owned subsidiary AmeriGas Propane, Inc.

Western Fuels Association, Inc. has reelected the following board members: Robert L.

Ill. Approves Telecom Cost-of-Service Rules

Phillip S. Cross

The Illinois Commerce Commission approved new rules for cost-causation principles used by telecommunications carriers in setting rates for competitive and noncompetitive services. The new rules rely on long-run service

incremental-cost studies to measure the cost of providing individual services and to check for subsidies between service groups. Carriers will also be required to use an aggregate revenue approach to test pricing for competitive and noncompetitive services. Re Implementation of Section 13-507 of the Public Utilities Act, No. 92-0211, July 19, 1995 (Ill.C.C.).



I appreciated Michael Gerrard's August piece, "Dodging the NIMBY Bullet: A Solution to Waste Facility Siting" (Perspective, p. 18). Waste facility siting is a subject that I consider a significant problem facing every U.S. citizen. Clearly, source reduction and recycling of waste should be and often is given priority over the construction of new disposal capacity.

Telephone Business Class Under Attack

Phillip S. Cross

The Illinois Commerce Commission (ICC) has signaled a willingness to remove the current business/residential differential from local telephone rates. While rejecting a proposal by its staff to begin the rate restructuring move in a case involving rates for a limited number of custom-calling services provided by Harrisonville Telephone Co., a small local exchange carrier, the ICC agreed that a movement toward eliminating the differential was appropriate under current pricing practices.

California Breakthrough

Lori A. Burkhart

At the request of California Gov. Pete Wilson (R) and key state legislators, Southern California Edison (SCE) has forged a consensus with a broad coalition, including electric customers and independent power producers (IPPs), on restructuring principles for California's electric utility industry. According to Thomas Higgins, SCE spokesman, the negotiated settlement represents a breakthrough compromise for the "PoolCo" and "anti-PoolCo" camps that will help prevent a fight in the legislature.

Utah Approves Sale of Telephone Exchange, Allocates Gain

Phillip S. Cross

The Utah Public Service Commission (PSC) has approved the sale of several local telephone exchanges by

U S WEST to South Central Utah Telephone Association, and also approved an agreement governing the rate treatment for the associated gain to U S WEST. The rate agreement allows U S WEST to retain for shareholders a portion of the gain on the sale in return for an obligation to pay for certain system upgrades and reduce the sales price for other transfers currently under consideration by the PSC.

CMS Energy Reveals LILCO Role

Lori A. Burkhart

CMS Energy Corp. has come clean as the "unnamed" potential investor in the plan announced in June by the Long Island Power Authority (LIPA) to acquire the Long Island Lighting Co. (LILCO).

CMS had not revealed its involvement in the proposed takeover before because its participation through a management services agreement is conditioned on the support of N.Y. Gov. Pataki. The company said it still is interested in providing the management services if the governor and other state officials decide a takeover is in the best interests of the citizens of Long Island.

Utah Approves DSM Lost Revenue Recovery Rejects Statistical Recoupling

Phillip S. Cross

The Utah Public Service Commission has approved an agreement to continue allowing PacifiCorp to recover lost revenues associated with

demand-side management programs. A study of the functioning of interim policies on DSM cost-recovery methods indicated that the lost revenue recovery encouraged the utility to meet its conservation resource goals, according to the PSC.