Fortnightly Magazine - October 1 1997

N.C. Sets Fuel Cost Proxy for Purchased Power

Resolving a new issue now arising under fuel cost adjustment clauses, the North Carolina Utilities Commission has ruled that electric utilities who buy wholesale power from marketers should treat 75 percent of the energy price component as a "fuel cost," in those instances where the seller cannot or will not provide actual fuel cost data.

The case involved Duke Power Co., which had purchased power from Enron for resale.

Uncooperative Cooperatives?

Your article in the July 1, 1997 issue of PUBLIC UTILITIES FORTNIGHTLY regarding co-ops and competition was very much on target ("Co-ops and Competition: Still a United Front?" p. 16). Our firm spends a significant amount of time providing financial advice to some of the more progressive rural electric cooperatives and have had some association with a few of the organizations mentioned in your article.

We are strongly pro-cooperative. Co-ops continue to provide high-quality electric, gas and other services to significant numbers of Americans, both rural and urban dwellers.

Off Peak

More low-cost states seen joining the move toward electric restructuring.

Six months ago, those states with the highest electric prices appeared the furthest along on the path to electric industry restructuring. That is no longer the case.

Today, even those states that can boast of lower-than-average rates are exploring avenues toward more competition, as shown below. The table groups states into five tiers, by the level of activity to date. These activities include initiatives by legislatures, regulatory commissions, utilities and other parties.

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