Fortnightly Magazine - January 1 1996

N.C. Tightens Rules on Utility Promotional Programs

The North Carolina Utilities Commission (NCUC) has adopted a new set of guidelines to help settle disputes between electric and gas utilities over utility-sponsored promotional programs. It also established a rule for evaluating proposed incentive programs, approving a new food-service rate program designed by Duke Power Co. to encourage the installation of electric food preparation equipment in commercial kitchens.

Hurdling Ever Higher: A New Obstacle Course for Mergers at the FERC?

For the partners in a utility merger, the celebration must wait. After opening the most delicate of dialogues, and then negotiating the price and closing the deal, the merger partners must yet gain the approval of regulators. The application may lie sealed in its FedEx pouch, safely on its way to Washington.

Marketing & Competing

As we move toward open energy markets, new players will be competing to offer consumers many of the services utilities offer today. It will no longer be enough to just meet our obligation to serve. We will also need to provide the products and services that customers value, at a level superior to that of the competition, while enhancing value to shareholders.

To retain customers, utilities need to understand the nature of the market. What customer values shape it?

Off Peak

At the November 1, 1995, meeting of the Natural Gas Roundtable in Washington, DC, a representative of the American Gas Association (A.G.A.) launched a blistering attack against the Energy Information Agency (EIA) for its forecasts of natural gas prices. In essence, A.G.A. complains that EIA's long-term forecasts have proven unreasonably high, softening enthusiam for gas-burning equipment (from turbines to gas water heaters).

As quoted by Gas Daily, A.G.A.'s representative said: "The bottom line is whose numbers are right.

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