Fortnightly Magazine - January 15 1995

The Indiana Utility Regulatory Commission (URC) has authorized Northern Indiana Public Service Co. to recover its Federal Energy Regulatory Commission Order 636 pipeline transition charges under a rate design proposal that divides the charges between sales and transportation customers. Under the approved recovery plan, the gas local distribution company (LDC) will pass to all ratepayers on a volumetric basis those transition charges related to gas supply realignment and stranded investment.

It was far from common just two years ago to identify an electric utility with a senior executive responsible for proactive marketing activities. Today, such people are relatively easy to find. Often they report directly to the CEO.

The waves of utility downsizings and corporate reorganizations have brought the realization that electricity will need to be sold, serviced, and strategically marketed to customers large and small.

Citizens Utilities Co. is continuing its aggressive expansion into the telecommunications business with an agreement to buy $292 million of telephone and cable television assets from Alltel Corp. However, the deal places the company's credit rating under increasing pressure.

Citizens will buy 109,000 telephone access lines in eight states, and acquire operations serving 7,000 cable television customers in four states. Alltel is a telecommunications and information services company based in Little Rock, AK.

A five-year, performance-based regulation plan for New York Telephone Co. (NYT) has been signed by the New York State Public Service Commission staff and 15 other parties. The plan calls for NYT to improve service quality, reduce prices, and foster competition in its service territory. NYT agreed to relinquish its right to file for general rate increases, but in exchange will receive increased regulatory flexibility.

The plan was negotiated over a two-year period and the PSC will review it over the next several months.