Fortnightly Magazine - October 1 1997

The chief executive officers of Baltimore Gas and Electric Co. and Potomac Electric Power Co. have expressed disappointment over a July 28 decision by a Baltimore County judge denying a motion to return their proposed merger case to the Maryland Public Service Commission.

The judge's decision will keep the merger proceeding before the Baltimore County Circuit Court.

"As we previously stated and made very clear to the court, we cannot merge in accordance with the terms of the current PSC order," said BGE Chair Christian Poindexter and PEPCO Chair Edward F. Mitchell.

Northeast Utilities Co. has reached an agreement in principle with its shareholders who had claimed that certain NU trustees and officers had failed to manage prudently the affairs of the utility, causing problems for its nuclear power program.

The settlement calls for insurers of those trustees and officers named in the suit to pay NU $25 million, less attorney's fees. NU has agreed to certain corporate governance changes. The agreement was reached after more than eight months of mediation by retired U.S. District Judge Robert C.

No clear signal as yet from new chair James Hoecker.

The Federal Energy Regulatory Commission had a busy day on July 30, but observers will have to wait until the fall to learn of any new wide-ranging policy initiatives planned by incoming chair James Hoecker, who has now succeeded Elizabeth Moler in the top post.

The end-of-summer meeting (em and Commissioner Donald F. Santa Jr.'s last (em was marked largely by a lack of controversy.

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.