Fortnightly Magazine - September 1 1995

Photovoltaics: A Dispatchable Peak-Shaving Option

PV technology combined with storage offers a cost-effective alternative to capacity additions.By John Byrne,

Young-Doo Wang,

Ralph Nigro, and

Steven E. Letendre

Until recently, both regulators and electric utilities have considered photovoltaic (PV) technology (i.e., solar cells) an unattractive

energy-supply option because of its relatively high cost. Now, however, a number of utilities have shown interest in using PV for peak-shaving.

More on Executive Compensation

Following an established policy disallowing rate recovery of executive incentive compensation awards, the Hawaii Public Utilities Commission (PUC) has rejected ratepayer funding for a salary plan administered by GTE Hawaiian Telephone Co., Inc. The PUC denied the carrier's attempt to differentiate its executive incentive plan by asserting that the plan was not a "bonus or extra compensation," but part of a total salary package set at a level competitive with market compensation.

Frontlines

For a good half a century, electric regulation has meant law, accounting, and economics. But no more. Now it's all about computers, telecommunications, and file-transfer protocols. Forget about CWIP, AFUDC, double leverage, and interest synchronization. They are all irrelevant.

LDC Must Shoulder Coal Tar Clean-up Costs

The Indiana Utility Regulatory Commission (URC) has denied an Indiana Gas Co., Inc. request for rate recovery of environmental costs associated with three of its instate manufactured gas plant (MGP) sites. The URC found that the local distribution company (LDC) had assumed the associated environmental liability in purchasing the properties, and that the costs were not related to providing gas service to current ratepayers.

People

United Water has named Robert A. Gerber, Jr. v.p. of corporate law for United Water Management & Services, a subsidiary.

AstroPower, Inc., a semi-conductor company specializing in photovoltaic energy conversion and optoelectric technology, has appointed Dr. George W. Roland v.p. and g.m. of its solar power business.

Eldon A. Cotton, assistant g.m.-power for the Los Angeles Department of Water and Power, was named president of the American Public Power Association.

Michigan Affirms Electric Discount Rates

The Michigan Public Service Commission (PSC) has reaffirmed its earlier approval of special manufacturing contracts submitted by Detroit Edison Co. to supply power to Chrysler Corp., Ford Motor Co., and General Motors Corp. Opponents had argued that the PSC erred by approving the price discounts while deferring consideration of their rate treatment as well as their effect on existing competitive programs.

Mailbag

Who's Tripping?

It requires a truly acrobatic stretch of the imagination to reach the same conclusions as Pennsylvania Commissioner John Hanger in his article, "Electric Reliability: How PJM Tripped on Gas-Fired Power Plants" (May l, 1995). The truth is that the natural gas system performed efficiently and reliably in January 1994, exactly as planned. The operators of the power plants in question purchased interruptible gas-transportation contracts to keep their fuel costs low.

Wash. Approves DSM Financing Plan

The Washington Utilities and Transportation Commission (UTC), in a case of first impression, has approved a request by Puget Sound Power & Light Co. to finance the full amount of its unamortized conservation investment through a new Conservation Asset Transaction and a Pooling Service Agreement. Estimated savings to the company associated with the financing arrangement total $22.7 million, with $19.9 million passed through to ratepayers and the rest allocated to the benefit of shareholders.

New Coalition Supports Fessler Proposal

A new coalition of 82 varied organizations (em including businesses, consumers, environmentalists, and utilities (em has announced support for the California Public Utility Commission's (CPUC's) majority proposal to restructure the electric industry.

D.C. Court Reviews DSM Rate Treatment

The District of Columbia Court of Appeals has upheld parts of a decision by the District of Columbia Public Service Commission (PSC) disallowing 25 percent of actual and projected

demand-side management (DSM) costs claimed by Potomac Electric Power Co. in a recent rate case. While agreeing that Potomac had failed to justify 100-percent recovery of its DSM costs, the court remanded the case to the PSC for a better explanation of why 25 percent represents an appropriate amount for the disallowance.

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