The Connecticut Department of Public Utility Control (DPUC) has authorized Connecticut Natural Gas Corp., a natural gas local distribution company (LDC), to increase rates by $8.9 million, with a return on equity (ROE) of 10.76 percent.
While examining cost allocation and rate design for natural gas distribution services provided by Pacific Gas and Electric Co., a local distribution company (LDC), the California Public Utilities Commission (CPUC) has concluded that the long-run marginal cost method it adopted in 1992 was not proving effective in producing prices observed in fully competitive markets.
sufficiently competitive to permit equal levels of regulation for AT&T Communications of the Southern States, Inc. and all other interexchange carriers.
The Connecticut Department of Public Utility Control (DPUC) has finished investigating levels of compensation for selected utility officials. The study followed allegations by the state's Attorney General that certain pay increases to state officials appeared excessive and might contribute to higher utility costs or "adversely affect economic development" in the state.
In particular, the Attorney General cited executive salaries at Connecticut Natural Gas Corp. and Connecticut Energy Corp., parent corporation of Southern Natural Gas Co.
The Virginia State Corporation Commission (SCC) has approved final rules for competition in the state's local telephone market, providing minimum certification and other standards for new market entrants. The rules permit subsequent negotiated resolution of controversial issues, such as interconnection rates and terminating traffic compensation, and preserve the right to evidentiary hearings when needed.
The California Public Utilities Commission (CPUC) has directed Southern California Gas Co. (SoCalGas) to set up a special account to track savings from reduced reservation charges for interstate gas pipeline capacity. The cost savings will track efforts by SoCalGas to reduce capacity reservations on the El Paso and Transwestern pipeline systems.
The CPUC also set up a process to review allocation of savings between core and noncore customers.
The California Public Utilities Commission (CPUC) has concluded that Pacific Gas and Electric Co. (PG&E) acted imprudently in deciding to enter a 15-year contract for interstate capacity on Transwestern Pipeline Co. expansion projects that came on line in 1992. It disallowed recovery of the costs associated with the Transwestern commitments in 1992 and in each subsequent year of the 15-year contract. The disallowed amount for 1992 is $13.6 million for the utility's gas department and $4.5 million for its electric department.
While it has lifted a stay that had delayed approval of the merger between Washington Water Power Co. and Sierra Pacific Power Co., the Washington Utilities and Transportation Commission (UTC) has rejected the use of "single-system pricing" to average costs between divisions in the new company, Resources West Energy Corp.
In a generic case, the Vermont Public Service Board (PSB) has announced guidelines for the development of restructuring plans for the electric utility industry. It asked the parties to the case to focus on the issues of customer choice, stranded costs, and stranded benefits. Plans for broad, industrywide restructuring must also address: 1) economic net benefits, 2) jurisdiction, 3) interstate coordination, 4) policy balance and fairness, and 5) pragmatic concerns such as competitive or market distortions.
Citing competition in residential energy markets, the Connecticut Department of Public Utility Control (DPUC) has approved a new heat-pump rate discount and installation rebate program proposed by United Illuminating Co. (em but with an eye trained on market share.
The DPUC acknowledged a prior reluctance to approve tariffs that promote specific end uses, but found that competition justified new approaches. It also cited other positive factors, including: 1) the utility's long-term surplus capacity outlook, 2) its low marginal cost, and 3) heat pump efficiencies.