Fortnightly Magazine - November 1 1995

FERC to Examine MAPP's Membership Rolls

The Federal Energy Regulatory Commission (FERC) has set for hearing a request by Koch Gateway Pipeline Co. (KGP) to charge market-based rates for firm and interruptible natural gas transportation services (Docket No. RP95-362-000). First, however, the FERC must conclude Docket No. RM95-6-000, which will delineate the circumstances under which it may approve market-based rates.

Maine Monitors Electric Telecom Ventures

The Maine Public Utilities Commission (PUC) has approved a settlement agreement governing restrictions on telecommunications ventures by Central Maine Power Co. Under the agreement, the utility must get PUC approval to enter the telecommunications market through a subsidiary except in the Northeast states and the Canadian provinces of New Brunswick, Nova Scotia, and Qu‚bec. In contrast to rules exempting smaller electric ventures from certain filing requirements, the utility must file a project application for all telecommunications ventures, no matter how small.

IXC Market Share a Trade Secret

The Montana Public Service Commission (PSC) has ruled that market-share data filed by telecommunications interexchange carriers (IXCs) in a case governing pricing for intrastate intraLATA toll calls fits the legal definition of a trade secret. As such, the data deserved ongoing protection from disclosure to the public. The PSC added that whether releasing the information might serve a useful purpose (em such as invigorating competition in the marketplace (em was not a valid factor in deciding whether information should be protected.

Wisconsin Downplays EMF Effects

While permitting Northern States Power Co. to build a new transmission line and associated facilities, the Wisconsin Public Service Commission (PSC) has ordered the utility to provide electromagnetic field (EMF) measurements along the line before and after the project is constructed. The PSC also ruled, however, that evidence in the case did not demonstrate whether "fear of EMF" would significantly affect property values adjacent to the transmission line right of way. Re Northern States Power Co., No. 4220-CE-143, Aug. 15, 1995 (Wis.P.S.C.).


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LDC Must Study Externalities

The Massachusetts Department of Public Utilities (DPU) has accepted a settlement agreement calling for approval of gas-forecasting, supply-planning and demand-side management (DSM) efforts by Berkshire Gas Co., a natural gas local distribution company (LDC). Nevertheless, the DPU directed the LDC to undertake a good-faith effort to quantify avoidable environmental costs

and to incorporate those findings in rescreening its DSM options.

N.J. Updates Economic Development Rates

The New Jersey Board of Public Utilities (BPU) has approved a plan by Jersey Central Power & Light Co. to replace its existing economic development tariffs with a new "Business Enhancement Incentive" rider. The tariff revision would continue programs designed to further the building expansion and use plans of large customers by offering discounted rates, but would eliminate ineffective programs such as per-worker rebates, priority location rebates, and high energy-efficiency programs.

Space Heating Discount Scrutinized

While approving a proposed rate discount program for new electric heating customers, the Maine Public Service Commission (PSC) has ruled that the program must meet "permanent load" requirements designed to protect ratepayers. Bangor Hydro-Electric Co. had filed proposals to market power to new electric heating customers at 5 cents per kilowatt-hour, as a temporary addition to its load requirements, with a price floor based on short-run marginal costs.

LDC Shifts Stranded Demand Costs

The Minnesota Public Utilities Commission (PUC) has authorized Northern Minnesota Utilities, a natural gas local distribution company (LDC), to insulate shareholders from the effects of losing a large firm sales customer by reallocating associated demand costs among remaining firm customer classes. It allowed the LDC to pass the increased costs through its purchased adjustment clause, finding that the utility was now alerted to the problem and had taken action to protect itself and its ratepayers from stranded costs caused by customers switching to interruptible transport service.

Off Peak

Companies: BRAZ (Brazos Electric Cooperative); COA (City of Austin); CPL (Central Power & Light); CPS (Central Public Service); GSU (Gulf States Utilities); HLP (Houston Lighting & Power); LCRA (Lower Colorado River Authority); SPS (Southwestern Public Service); SWEP (Southwestern Electric Power); TNP (Texas New Mexico Power); TU (Texas Utilities Electric); WTU (West Texas Utilities).Assumptions: Statewide economic dispatch, where all utilities receive the market-clearing marginal energy cost for their generation (similar to studies that Moody's Investors Service has

N.Y.'s Pataki: Dissolve LILCO

New York Gov. George E. Pataki wants Long Island Lighting Co. (LILCO) dissolved to reduce electricity rates on Long Island. LILCO presently has the second-highest residential rates in the nation (Maui Electric Co.'s are highest) (em 16.8 cents per kilowatt-hour (›/Kwh), compared to the national average of just 8.8›/Kwh. Pataki has asked the Long Island Power Authority (LIPA) to draw up a plan that: 1) cuts rates in Nassau and Suffolk counties, 2) cuts rates by "double digits,"

3) protects Long Island residents from any property tax hikes, and 4) increases competition.

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