FERC's New Merger Policy Applied. In the first application of its new merger policy, the Federal Energy Regulatory Commission on Jan. 15 told six Midwestern utilities that they would have to negotiate an agreement to protect ratepayers in order to form a new holding company, Interstate Energy Corp.
FERC also set for hearing limited competitive issues (Docket Nos. EC96-13-000 et al.).
Intervenors were concerned that the utilities offered to freeze rates rather than reduce them, so the FERC gave the applicants 30 days to negotiate an "adequate" ratepayer protection mechanism.
The FERC said that if parties fail to make such an agreement, it either would decide the issue on the basis of the written record, or set the issue for hearing.