Fortnightly Magazine - October 1 1995

Utah Approves DSM Lost Revenue Recovery Rejects Statistical Recoupling

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.

CMS Energy Reveals LILCO Role

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.

Puget Sound P&L Berates BPA

Puget Sound Power & Light (PSPL) has protested Bonneville Power Administration's (BPA's) plan to negotiate industrial power contracts with its own direct services industries, giving them rate cuts without first taking part in full public hearings. Gary Swofford, PSPL senior vice president for customer operations, said in August that BPA planned to have signed contracts in place by September, when consumer hearings are scheduled.

Heat Pump Program Fails Test in Arkansas

The Arkansas Public Service Commission (PSC) has rejected a set of promotional programs proposed by Southwestern Electric Power Co. that included incentives for customers to install heat pumps and electric hot water heaters. The PSC found that the programs came down heavily on the side of fuel substitution as opposed to serving conservation goals.

Cajun Conflict Continues

Cajun Electric Cooperative has lost its request with the Fifth Circuit Court of Appeals for an emergency stay of the appointment of a trustee in bankruptcy. Cajun had claimed a conflict of interest because the proposed trustee, Ralph Maybe, belongs to the Salt Lake City law office of LeBoeuf, Lamb, Greene & McRae, which worked for Entergy and Gulf States Utilities Co. (GSU) on matters concerning the River Bend nuclear plant. Entergy and GSU have been involved in a $2-billion lawsuit with Cajun over the plant since 1989.

U.S.

LDC to Revamp Supply Costs Accounting

In a case involving automatic adjustment clause procedures for state utilities, the Minnesota Public Service Commission (PSC) has directed Northern States Power Co. to make major modifications to its accounting system for gas costs. While approving a requested variance of its adjustment clause rules to allow the utility to recover a $1.05 million undercollection in its gas cost true-up rate, the PSC found the error due to the complexity of accounting for gas sales.

LDC Settles Gas Pipeline Safety Case

The Ohio Public Utilities Commission (PUC) has approved a settlement agreement in a case involving a safety code investigation of Columbia Gas of Ohio, Inc., a natural gas local distribution company. The PUC had directed its staff to investigate whether Columbia Gas had violated safety code provisions governing maximum allowable operating pressures for pipeline segments.

NYMEX, EnerSoft Team Up on New Gas Trading System

The New York Mercantile Exchange (NYMEX) and EnerSoft Corp., a New York State Electric & Gas subsidiary, have launched Channel 4, the only electronic bulletin board (EBB) that allows companies to trade natural gas and pipeline capacity in the United States and Canada via a single system. Channel 4 is also the only system connected to over 40 pipelines, which it sweeps for information.

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