The U.S. Court of Appeals for the Third Circuit on October 17 ruled that plaintiffs claiming injuries related to the 1979 accident at Unit 2 of the Three Mile Island nuclear plant (TMI-2) may seek punitive damages. Plaintiffs may receive compensatory and punitive damages under the Price-Anderson Act from: 1) primary financial protection provided through commercial insurance policies, which is required of all nuclear utilities; and 2) secondary financial protection in the form of private liability insurance under an industry retrospective rating plan.
Fortnightly Magazine - December 1995
The New Hampshire Public Utilities Commission (PUC) has issued preliminary guidelines for a pilot program to examine the implications of retail competition in the electric industry. The guidelines, which respond to a state law mandating creation of a retail competition pilot, propose opening 3 percent of each electric utility's peak load to competitive suppliers of electric power.
Oklahoma appears finally to have settled a 1992 Southwestern Bell Telephone (SBT) rate case, refunding customers about $438 million and cutting rates by $84.4 million annually. The settlement follows an FBI investigation and allegations of commission bias. The Oklahoma Supreme Court will formally approve the settlement once the many related, pending lawsuits are dismissed.
The Virginia State Corporation Commission (SCC) has initiated an investigation of electric industry restructuring and emerging competition. The SCC stressed that Virginia is not saddled with high-cost power, and that larger electric utilities in the state currently provide service at rates "significantly below" the national average. Nevertheless, the SCC concluded that a formal investigation was necessary to determine whether regulatory improvements might result in reliable service at lower costs for state consumers.
contract, although the Federal Energy Regulatory Commission has yet to approve the new rates. These companies will now take 75 percent of their total requirements from BPA (about 1,300 Mw).
The Florida Public Service Commission (PSC) has ruled that Gulf Power Co. may record a revenue shortfall associated with its experimental real-time pricing program "above the line" in determining current earnings under a rate agreement capping company profits at a 12.7-percent return on equity. The program permits Gulf Power to price services for large industrial customers to reflect lower costs associated with offpeak usage.
The Citizens Advisory Panel (CAP) has released its proposal to cut rates on Long Island by 20 percent, in response to New York Gov. George Pataki's call for the dissolution of the Long Island Lighting Co. (LILCO). Electric rates on Long Island are the second-highest in the nation.
The CAP plan would slash at least $1 billion from Shoreham debt, and refinance the remaining debt with bonds issued by the Long Island Power Authority (LIPA). CAP believes the $1-billion cut alone would reduce electric bills 10 percent.
The Maine Public Utilities Commission (PUC) has authorized Bangor Hydro-Electric Co. to enter into oil price-swap and price-cap transactions. The utility said that the since the PUC had eliminated its fuel adjustment clause in an earlier proceeding, it had sought ways to reduce the risk associated with fuel price changes. The oil "price hedges," seek to set Bangor's future cost of oil by requiring the parties to pay a settlement amount if the actual price, as published by a well-recognized source, should vary from the price contained in the agreement.
U.S. District Court Judge Joseph Farnan, Jr. on October 16 approved a $36.5-million settlement resolving class action lawsuits alleging securities laws violations against the bankrupt Columbia Gas System (CGS).The lawsuits were filed by various security holders against CGS, its independent public accountants, the underwriters of its 1990 stock offering, and certain officers and directors. CGS's portion of the settlement amounts to $16.5 million, with the remainder shared among the insurance carriers of various defendants.
The Idaho Public Utilities Commission (PUC) has approved the merger of Washington Water Power Co. with Sierra Pacific Power Co. and its corporate parent, Sierra Pacific Resources. Pursuant to the terms of the merger agreement, the surviving entity will become Resources West Energy Corp., a Nevada corporation authorized to conduct business in Nevada, Washington, Oregon, California, and Idaho.The utilities estimate that the merger will save ratepayers $514 million over a 10-year period, with nearly half the savings attributable to reductions and alterations in workforce.