Fortnightly Magazine - October 15 1996

Utility Abandons Standby Generation Control Pilot

The Virginia State Corporation Commission has authorized Virginia Electric and Power Co. to suspend a pilot program for its Standby Generation Control System. (For prior ruling approving the program, see Re Virginia Electric Power Co., 162 PUR4th 363 (Va.S.C.C. 1995).)

The approved pilot authorized the utility to install control equipment on a mixture of customer- and utility-owned generators. Virginia Power would then operate the control system to provide extra generation during peak.


Christopher M. Coburn and Charles William Burton were confirmed by the U.S. Senate as directors of the U.S. Enrichment Corp. Both will serve five-year terms. Coburn is v.p. of the Technology Partnership Practice for Battelle Memorial Institute. Burton, an attorney, is of counsel to Jones, Day, Reavis & Pogue.

Northern Indiana Public Service Co. promoted Dorothy M. Hawkins to information technology director. Kennan J. Walsh, senior rate specialist, was promoted to senior (electric) regulatory specialist. Gregory A.

Ohio Oks Real-time Program

The Ohio Public Utilities Commission (PUC) has authorized Ohio Edison Co. to begin a real-time pricing (RTP) experiment that will test customer response to hourly price signals. The program allows customers to shift usage to a lower-price period or to add usage during lower-price periods.

Participation is limited to large usage customer classes. The program rate is designed so that if a customer's actual and historical usage patterns match, the bill will be the same as if the customer was not on the RTP program. Re Ohio Edison Co., Case No. 96-436-EL-ATA, Aug.

Off Peak

Skittish Stockholders? Polling Arizona

Utilities, like the President, may face a hard fight

for this state's trust.

Should investors continue to put their faith in utilities?


Mid-American Power, LLC has bought a 53-Mw, coal-fired generating plant, put it on the power grid, and plans to convert the facility into a 300-Mw, gas-fired, combined-cycle plant. Mid-American bought the E.J. Stoneman Station in Cassville, WI, from Dairyland Power Cooperative after almost two years of negotiations. The companies making up Mid-American include Power Systems, Ltd., Burns & McDonnell Engineering, Inc., and WPS-Power Development, Inc. The plant supplies energy to two regional utilities.

Kentucky Approves Gas-cost Incentives

The Kentucky Public Service Commission (PSC) has approved two gas-cost incentive programs proposed by Columbia Gas of Kentucky, Inc., a natural gas local distribution company (LDC). Under the first phase of the experiment, the LDC will retain 35 percent of its offsystem sales, returning 65 percent to ratepayers. Phase two allocates to ratepayers all capacity-release revenues received by the company up to a benchmark level.

Merger Mania Continues

Ohio Edison Company and Centerior Energy Corp. announced an agreement September 17 on a tax-free, stock-for-stock merger to form a new holding company, FirstEnergy Corp., worth about $4.8 billion, based on stock prices that closed several days earlier.

The news came a month after two other merger deals were announced in mid-August: 1) Atlantic Energy, Inc. and Delmarva Power & Light Co. ($2.2 billion), and 2) Houston Industries Inc. and NorAm Energy Corp. ($3.8 billion). NorAm is the nation's third-largest U.S. natural gas utility.

Florida Rejects Discount Rate Proposal

The Florida Public Service Commission (PSC) has rejected Gulf Power Co.'s proposal to offer negotiated contracts to large customers that would otherwise procure power from another source. The utility had proposed using incremental cost as the price floor for its negotiations, but the PSC found the procedures for administering the tariff "insufficient to justify a departure from offering electric service based on standard tariffed rates." Re Gulf Power Co., Dkt. No. 951161-EI, Order No. PSC-96-0845-FOF-EI, July 2, 1996 (Fla.P.S.C.).