The Washington Utilities and Transportation Commission (UTC) has turned back a pre-merger attempt by Puget Sound Power and Light Co. to make permanent a $165.5-million rate increase allowed under its periodic rate adjustment mechanism (PRAM). (The PRAM is designed to remove disincentives to utility conservation efforts by "decoupling" revenues from sales levels and relying instead on a revenue-per-customer approach to cost recovery.) Puget had earlier agreed to defer a scheduled base-rate filing pending the UTC's review of its proposed merger with Washington Energy Co.

The Iowa Utilities Board (IUB) has permitted MidAmerican Energy Co. (em the corporate parent of recently merged Midwest Gas and Iowa-Illinois Electric and Gas Co. (em to include combined gas-procurement performance data as part of an experimental gas-supply incentive program originally designed for MidWest Gas alone. The IUB rejected a proposal to terminate the program and consider separate programs for the companies, finding an artificial separation of the performance data of the now-combined gas-supply departments unproductive.

The New York Public Service Commission (PSC) has ordered New York Telephone Co., a telecommunications local exchange carrier (LEC), to notify customers that they may now choose an alternative carrier for intraLATA toll calling. Interexchange carriers (IXCs) in the state had complained about the LEC's plans to implement a recent PSC order requiring equal access for intraLATA toll services.

Bucking the current trend among state utility regulators, the Indiana Utility Regulatory Commission (URC) has denied a request by Northern Indiana Public Service Co., a natural gas local distribution company (LDC), to retain a portion of the revenues it receives from pipeline capacity-release transactions. The LDC asked the URC to permit shareholders to retain 50 percent of the revenues gained from participation in the "secondary market" for interstate pipeline capacity instead of flowing them back to ratepayers through the quarterly gas-cost adjustment (GCA) mechanism.

After well over a decade, the Kentucky Public Service Commission (PSC) has finally concluded a long-standing dispute governing rate treatment for Louisville Gas & Electric's investment in the Trimble County generating facility. In 1989, the PSC disallowed 25 percent of the 495-megawatt coal-fired plant from rate base. Under the newly approved agreement, the utility will refund current customers $22 million: $5.3 million is reserved to special contract customers, and the balance will be refunded to all other customers through a per-kilowatt-hour credit over a five-year period.

"market-based" electric tariff for Fitchburg Gas & Electric Co., a combined electric and gas utility. The "Energy Bank Service" for new or expanding industrial customers offers rates competitive with average U.S. industrial rates.

The North Dakota Public Service Commission (PSC) has approved a request by Northern States Power Co., an electric utility, to treat all of its demand-side management (DSM) expenditures as expenses rather than capitalizing them. The PSC found that the change would strengthen the company's financial and competitive positions as it initiates its transition to a restructured electric industry.

In a 1992 rate order the PSC directed the utility to capitalize a substantial portion of the DSM costs over a five-year period.

The Colorado Public Service Commission (PSC) has renewed its commitment to rate recovery of costs associated with utility-sponsored demand-side management (DSM) programs. At the same time, however, it has formally rejected a series of broader-based rate reforms under development since 1991. The rulings came in a case involving the Public Service Co. of Colorado, an electric utility. The PSC found a "ubiquitous lack of support" for mechanisms to encourage utility conservation investments that could reduce total system costs, but might also reduce sales levels.

Public utility stocks showed no signs of letting up during the fourth quarter of 1995. The Public Utilities Stock Index rallied a brisk 234.66 points, or 6.38 percent, to close at 3910.01. Not to be outdone, the Dow Jones Industrial Average gained 355.86 points, or 7.47 percent, to close at 5117.12, and the S&P 500 Stock Index climbed 34.21 points, or 5.88 percent, to close at 615.93.

Certain stocks sparkled more than others:

SCANA Corp.

Annual Annual EPS

Close Close Percent 52-Wk 52-Wk Div Div Book P/E Last

Company Region 10/02 12/29 Change High Low Rate Yield Value Ratio 12 Mos.Electric Utilities

AEP Company Inc. Midwest 36.13 40.50 12.11 40.63 31.25 2.40 5.93 22.68 15 2.71

Unicom Corp.