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Fortnightly Magazine - November 15 1996

N.Y. Allows Gas Submetering for C&I Customers<

The New York Public Service Commission (PSC) has granted a series of waivers from its existing ban against the submetering of gas service to commercial and industrial (C&I) customers in the state. The waivers will allow GCT Venture, Ltd. to submeter gas service to approximately 25 food vendors renting facilities and space within the real estate firm's proposed redevelopment of the grand Central terminal in New York City.

The PSC observed that gas submetering was prohibited because of safety considerations, especially in cases of residential service.

Byline: 
Phillip S. Cross
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FCC Telco Decision Irks Georgia Regulator

Georgia Commissioner Stan Wise says he is very unhappy with the decision by the Federal Communications Commission (FCC) to require states to deaverage the cost of providing telephone service for companies that want to compete with the regional Bell operating carriers, such as BellSouth.

(The U.S. Court of Appeals for the Eighth Circuit enjoined some aspects of the FCC rules on October 15. See, Courts and Commission, In Brief, p.

Byline: 
Lori A. Burkhart
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Financial News

Imagine That!

A Stock-price Premium for DSMA rise in DSM spending (as a percentage of total expenditures) indicated

an increase in market-to-book ratio.

For electric utilities, financial and managerial attributes such as rate of return or the dividend payout ratio often exert a strong positive effect on the market-to-book (M/B) ratio (em the ratio of the company's stock price divided by book value.

Byline: 

Philipp Degens and M. Khawaja

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In Brief...

Sound bites from state and federal regulators.

Telco Interconnection Rules. Federal appeals court enjoins pricing aspect of rules published August 8 by the Federal Communications Commission to govern sale at wholesale of local exchange service elements by Bell system local carriers to new competitors (who would resell such elements to provide competitive local telephone services). Finds possibility of irreparable harm plus likelihood that Bell carriers might prevail on the merits of jurisdictional issues. No. 96-3406, Oct. 15, 1996 (8th Cir.).

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Commission Shelters Utility QF Capacity Payments

The Massachusetts Department of Public Utilities (DPU) has again turned down a request by a cogeneration developer (QF) to collect capacity payments for the entire 20-year term of a purchased-power contract with Commonwealth Electric (CE), despite conflicting advice from the state supreme court.

Last year, in remanding a similar DPU ruling, the Massachusetts Supreme Court had suggested that a contract price violates the Public Utility Regulatory Policies Act (PURPA) if it does not include any capacity payments for most of its term.

Byline: 
Phillip S. Cross
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Industrial Customer Can Choose Subtransmission

The Maine Public Utilities Commission (PUC) has ruled that Central Maine Power Co. acted in a discriminatory manner when it refused to grant a request by a large industrial customer, Yorketowne Paper Mills of Maine, to rate classes to time-of-use subtransmission.

The case was notable since the customer's employees had filed a complaint alleging improper denial of service and seeking reparation for overcharges. See, Yorketowne Paper Mills of Maine, et al. v. Central Maine Power Co., 170 PUR4th 535 (Me.P.U.C.1996).

Byline: 
Phillip S. Cross
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Maine PUC OKs Hannaford Deal

The Maine Public Utilities Commission (PUC) has OK'd a much-publicized special rate agreement between Central Maine Power Co. and one of its large customers, the Hannaford Brothers Co., which operates supermarkets.

Nevertheless, the PUC declined to order the utility to offer similar rates to Hannaford's competitors in the supermarket business. It advised that it cannot attempt to equalize electric rates among business competitors, or to reduce advantages that large businesses have over smaller businesses.

Byline: 
Phillip S. Cross
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Arizona Extends Plan to Share LDC Pipeline Capcity

The Arizona Corporation Commission has extended its interim approval of the "Interstate Pipeline Capacity Sharing Program" implemented by Southwest Gas Corp.

The plan allows the gas utility to buy gas on the spot market from areas outside the area served by its traditional pipeline supplier, El Paso Natural Gas Co., and then transport the gas using pipeline capacity held by El Paso's other operating divisions in Nevada and California. The utility then credits the contributing pipeline division with one-half of the commodity-cost savings as compensation.

Byline: 
Phillip S. Cross
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California Maintains Limits on RTP Pilot

The California Public Utilities Commission (CPUC) has denied a request by a large noncore gas user for a waiver from eligibility limits imposed under a real-time pricing (RTP) experiment for gas transportation service approved by the CPUC in 1994 for San Diego Gas and Electric Co. (SDG&E).

In an earlier ruling, the CPUC had restricted eligibility for the RTP experiment to a maximum of 10 customers per year, and had excluded electric generation and cogeneration customers from eligibility.

Byline: 
Phillip S. Cross
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