Fortnightly Magazine - April 15 1996

Price-cap Reforms Reflect Local Competition

Citing heightened competition and lower earnings in the state's local exchange telephone market, the California Public Utilities Commission (CPUC) has frozen price caps for local exchange carriers (LECs) for most noncompetitive local services, and has suspended the 5-percent "x-factor" services for an intermediate level of competition.

Byline: 
Phillip S. Cross
Read Entire Article

ComEd Saves Taxes on Byron Plant

The Illinois Property Tax Appeal Board has decided to cut taxes for Commonwealth Edison Co.'s (ComEd) Byron nuclear power plant. ComEd currently pays about $40 million in real estate taxes on the plant to Ogle County; the decision would lower the payments to $13.3 million. Ogle County will most likely appeal the decision, because certain local tax districts had planned on the revenue, and some have already spent the funds.

Byline: 
Lori A. Burkhart
Read Entire Article

LECs in Oregon to See Competition

The Oregon Public Utility Commission (PUC) has authorized three new telecommunications companies to provide local exchange service in competition with existing carriers U S WEST Communications, Inc. and GTE Northwest, Inc.

Byline: 
Phillip S. Cross
Read Entire Article

Raytheon Benefits From "Secret" Contract

The Massachusetts Department of Public Utilities (DPU) has approved a discount electric rate contract for defense contractor Raytheon Co., a customer of Massachusetts Electric Co. (ME). But the secrecy surrounding the contract has created an uproar.

Although the terms of the contract are confidential, Raytheon said the three-year contract would yield "significant savings" on its $20-million annual electric bill. ME called the discount an "economic development" contract, which would keep Raytheon and its 17,500 employees from leaving the state.

Byline: 
Lori A. Burkhart
Read Entire Article

PSC Scales Back Residential Subsidy

The Michigan Public Service Commission (PSC) has directed Consumers Power Co. to scale back any residential rate subsidies. The order appeared during a review of a proposed settlement in a series of applications to increase rates, revise depreciation methods, and offer discounts to industrial customers.

The PSC added, however, that the company should not try to eliminate the entire subsidy in a single step.

Byline: 
Phillip S. Cross
Read Entire Article
V