Fortnightly Magazine - May 1 1997

LIPA Takes Over LILCO

The Brooklyn Union Gas Co. and The Long Island Lighting Co. have agreed with the Long Island Power Authority for LIPA to acquire all of the Long Island Lighting Co.'s electric transmission and distribution system, plus substantially all of its regulatory assets and its share of the Nine Mile Point 2 nuclear plant.

The transaction would take place through a stock purchase from the holding company, which Brooklyn Union and Long Island Lighting Co. will form.

Enid, Okla., Flights to Municipalize

The city commissioners of Enid, Okla., voted to buy the portion of the electric distribution system of Oklahoma Gas and Electric Co. located within city limits, in agreement with a buy-out clause contained in the franchise agreement between the utility and the city.

The city's 25-year franchise agreement with Oklahoma Gas & Electric will expire in June 1998, but Enid must notify the utility one year in advance if it wants to terminate the agreement.

Perspective

Every electric utility is looking for new ways to market energy to customers. And why not? Hospitals and other health care organizations constitute one customer segment sorely in need of a new marketing campaign. Even so, the utilities are making many mistakes. The health care sector can present a unique challenge to the utility marketing professional.

The first mistake that utilities make is assuming that hospitals are run like businesses. Technically, hospitals are not businesses. Hospitals do not function like businesses.

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