Fortnightly Magazine - June 15 1995

(TRC) test has become the dominant method of comparing the costs and benefits of demand-side management (DSM) programs. Yet the TRC test fails to recognize the negative rate impacts from reduced kilowatt-hour consumption. DSM advocates argue that more extensive DSM programs will compensate for this flaw. If all customers have an opportunity to participate in a DSM program, they claim, customers' total bills will fall in spite of rising rates that pay for the DSM investments.

The Maine Public Utilities Commission (PUC) has terminated an ongoing rulemaking on stranded-cost recovery by electric utilities in the state. In closing the docket, the PUC cited proposed rules recently issued by the Federal Energy Regulatory Commission (FERC) as evidence of FERC jurisdiction in the matter.

The Illinois Commerce Commission (ICC) has proposed rules to implement dialing parity for providers of toll telephone services in the state. Under the rules, local exchange carriers (LECs) must offer customers two carrier presubscription choices, one for interMSA (market service area) calls and another for nonlocal intraMSA calls. The ICC rejected a proposal to delay the move to presubscription until LECs are permitted to compete with interexchange long distance carriers (IXCs).

U S West Communications, Inc., a local exchange carrier (LEC) to reduce the price of "essential monopoly" services it provides its payphone competitors to cure a price squeeze in the public payphone services market. Using an "imputation test," the UTC found that the cost of a local telephone call was greater than the LEC's current levy of $0.25 at its public pay stations.