Perspective

In telecommunications, regulators turn increasingly to the nebulous term known as "cost-based" to set pricing policy. An example is the new Telecommunications Act of 1996 (Act), whose pricing standards for interconnection and network element charges stipulate that the just and reasonable rate for the interconnection of facilities and equipment should be "based on the cost ...

"Secret" Rates at Issue in Ohio

The Ohio Steel Commission is urging the Ohio Public Utilities Commission (PUC) to refuse confidential treatment to discounted rate agreements between electric companies and their customers, arguing that such treatment denies energy users access to information that would help them negotiate competitive rates. The 16-member Steel Commission's request responds to the PUC's decision to keep the terms of a contract between Cleveland Electric Illuminating Co. and American Steel & Wire Corp.

Calif. Power Authority Rejects Exit Fee

The Eastside Power Authority (em composed of four California irrigation districts, one municipal utility, and two water districts (em plans to leave Southern California Edison's (SCE's) electric distribution system and serve its own members' water-pumping load. Eastside says it will build its own electric distribution system adjacent to SCE's, and interconnect with the system owned by Pacific Gas & Electric Co.

Nevada Takes First Competitive Step

The Nevada Public Service Commission (PSC) has approved an interim order and report finding that competition in the electric industry could benefit the state if the legislature chooses to authorize retail competition.

The PSC said that its investigations revealed no indications that retail competition would impair reliability, violate expectations of utility shareholders, harm customers, reduce tax revenues, or set back the state's economic goals.

Maryland Gas Pilot Offers Choice

Columbia Gas of Maryland (CGM), a subsidiary of The Columbia Gas System, Inc., has asked the Maryland Public Service Commission to approve its "Customer Choice Pilot Program," which would allow 10,000 residential customers to choose their natural gas supplier.

The proposed two-year pilot would begin November 1, and any gas purchased from another supplier would be exempt from the state's 2-percent gross receipts tax. "Our large industrial and commercial gas users have been able to choose their natural gas suppliers for many years," says Gary J.

Utility Alliance Coordinates Transmission

Virginia Power, Allegheny Power, Centerior Energy, and Ohio Edison have agreed to jointly manage their interconnected transmission systems. The alliance will schedule and coordinate bulk-power transactions, determine reimbursement for wholesale use of utility transmission facilities, resolve member disputes, and handle transmission system accounting. However, each member will retain ownership of its facilities. The alliance will follow the General Agreement on Parallel Paths (GAPP), which includes procedures to coordinate the flow of wholesale power among utilities.

Joules

Cleveland Electric Illuminating Co. (CEI) customers will soon be able to earn "frequent flyer" points for using electricity or replacing gas appliances with electric ones. Under the program, planned for Spring 1997, customers receive one point for every kilowatt-hour they use each month. Points can be redeemed for electric appliances, such as night lights, air purifiers, and electric grills.

People

Lisa S. Beal was hired by the Interstate Natural Gas Association of America as environmental affairs director. She comes from the Hazardous Waste Management Association, where she was transportation/safety manager.

Commissioner Stan Wise was elected second v.p. of the Southeastern Association of Regulatory Utility Commissioners. Wise is vice chair of the Georgia Public Service Commission.

The City of Anaheim Public Utilities hired Dale Tarkington away from Arizona Public Service Co.

Frontlines

Six weeks ago I wrote a column ("$70,000 an Hour," July 15, 1996, p. 4) about nuclear waste, the Department of Energy (DOE), and the billions of dollars paid in by electric utilities that lie stranded in the federal nuclear waste fund.

On July 23 a federal appeals court ruled that DOE must establish a repository and begin accepting high-level nuclear waste for storage, beginning January 31, 1998. (See, Indiana-Michigan Power Co. v. DOE, D.C. Cir.