Sound bites from state and federal regulators.
Gas Franchise Rights. North Carolina adopts new rules on gas service expansion under a 1995 state law forcing incumbent gas distributors to forfeit exclusive franchise rights in unserved territory in certain cases, but allows a two-year grace period if the utility can show a commitment to build plant needed to reach unserved areas. Docket No. G-100, Sub 70, Mar. 19, 1996 (N.C.U.C.).
Firm vs. Interruptible. Idaho OK's proposal by Washington Water Power Co.
The Nuclear Regulatory Commission (NRC) is considering revising its regulations on nuclear plant decommissioning funding. Under current NRC regulations, adopted in 1988, an electric utility may set aside decommissioning funds annually over the estimated life of a plant. In a deregulated environment, however, a nuclear power licensee could lose its regulated rate base as a source to fund the balance of decommissioning expenses.
On April 4, less than two months after the Telecommunications Act of 1996 was enacted, the Federal Communications Commission (FCC) granted the first application allowing a public utility holding company, CSW Communications, Inc., to enter telecommunications markets (FCC 96-152). CSW is now an "exempt telecommunications company." The FCC noted that the entrance of utility companies as new competitors could result in lower prices and wider choices for consumers.
The City of Palm Springs, CA, has asked the Federal Energy Regulatory Commission (FERC) to approve a plan allowing it to enter the electric business by installing a second electric meter at customer locations.
Charles B. Curtis, deputy secretary of the U.S. Department of Energy, spoke on the world energy balance and its impact on U.S. markets at the American Gas Association (A.G.A.) Natural Gas Roundtable on April 2 in Washington, DC. Curtis pointed out the security implications of the latest Energy Information Administration (EIA) forecast that global demand for oil might reach an additional 20 million barrels a day by 2010, and that the Persian Gulf would likely supply 75 percent of that demand.
El Paso Natural Gas Co. (EPNG) has filed a settlement at the Federal Energy Regulatory Commission (FERC) that resolves its general rate case with natural gas pipeline customers such as Southern California Gas Co. (SCG) as well as the question of who pays for unsubscribed capacity.
Months of confidential negotiations resulted in agreements with 95 percent of EPNG's customers, and with the California, Nevada, and Arizona commissions.
Stranded investment is mostly intrastate.
Let the states work free of uncertainty.
Recent activity in both chambers of the U. S. Congress shows federal lawmakers seeking to help the electric industry move toward competition. More than likely, election-year politics will stand in the way. Even so, Congress can go one better: It can step aside and let the states lead the way.
The greatest concern lies in stranded costs (em utility assets and obligations valued on company books at above-market levels.
Intense though it has been, the debate over stranded electric investment has addressed only half of the issue. What the utilities will do with the money is as important as whether they should recover anything at all.
Retail competition will accelerate the decline of utility-owned generation; utilities will rely less on their own production and more on purchased power to serve their remaining customers.
Texas-New Mexico Power Co. (TNMP) has asked the Texas Public Utility Commission to approve "Community Choice," which would allow state customers to choose their energy providers beginning in January 1997. After a five-year transition period, customers would be permitted to choose both their electric and energy services providers. During the transition, TNMP would be allowed to reduce the stranded costs of its only generating plant, TNMP One, by keeping rates, including fuel and purchased-power costs, at current levels.