Concluding an investigation of supply-cost recovery for the Associated Natural Gas Co., a natural gas distribution company (LDC), the Missouri Public Service Commission (PSC) has found imprudent the LDC's long-term supply contract with an affiliated supplier, SEECO, Inc. The PSC excluded from adjustment clause recovery one-half the premium paid above spot-market prices under the contract for firm fixed-price swing-gas supply. The PSC said the LDC failed to properly evaluate other gas suppliers prior to entering into the contract or to document its gas purchasing practices.

The Pennsylvania Supreme Court has upheld a Pennsylvania Public Utility Commission (PUC) ruling permitting Metropolitan Edison Co. to charge current ratepayers approximately $8.3 million a year for a portion of the cost of decommissioning the disabled Three Mile Island Unit 2 (TMI 2) nuclear generating plant. A lower court found the cost recovery improper because the plant was not and would not be "used and useful" in providing service to customers (see Irwin A. Popowsky v. Penn. PUC, 642 A.2d 648, 153 PUR4th 244 (Pa.Commw.Ct.

The West Virginia Public Service Commission (PSC) has issued a series of legal rulings favoring Energy America, Inc., developer of a qualifying cogeneration facility (QF), in a complaint proceeding to enforce Wheeling Power Co.'s power-purchase obligation under the Public Utility Regulatory Policies Act of 1978 (PURPA). The PSC ruled that Wheeling should be viewed as a stand-alone company, not a part of the American Electric Power (AEP) system as alleged by the utility.

The Florida Public Service Commission (PSC) has approved a Florida Power Corp. plan to curtail its purchases from qualifying cogeneration facilities (QFs) during minimum load conditions. The PSC said that minimum load conditions typically occur between midnight and 6:00 a.m. when weather is mild and system demand low, and that the utility had curtailed QF purchases seven times in late 1994 and early 1995.

The New York Public Service Commission (PSC) has modified an earlier ruling (Re Restructuring of the Emerging Competitive Natural Gas Market, 158 PUR4th 553 (N.Y.P.S.C. 1994)) that set forth a policy framework to guide the post-Order 636 transition of the state's natural gas distribution industry. The 1994 ruling divided local distribution company (LDC) customers into core and noncore groups, and allowed flexible market-based pricing for unbundled services to the noncore group.

The New York Public Service Commission (PSC) has canceled efforts to develop a performance incentive mechanism for costs associated with the Nine Mile 2 nuclear power plant. The efforts stemmed from a 1993 settlement that determined recoverable plant operation and maintenance costs. The PSC said its staff had withdrawn from ongoing incentive negotiations, citing a "change in emphasis" from specific to broad-based incentives in electric regulation.

The Michigan Public Service Commission (PSC) has approved a price-cap electric regulation plan for Edison Sault Electric Co. Edison will cap base rates at existing levels, roll its existing power-supply cost-recovery (PSCR) factor into base rates, and suspend the PSCR clause prospectively. The utility will then be authorized to change initial rates upon 30 days' written notice to the PSC, as long as the altered rates for each class do not exceed initial rates.

The North Dakota Public Service Commission (PSC) has decided to consider different types of regulation for electric utilities and has issued a set of criteria to guide interested parties in formulating specific proposals for experimental programs. In a separate statement, however, Commissioner Leo M. Reinbold warned against making too much of the decision.

All proposals must promote increased utility efficiency and flexibility in meeting customer needs while allowing customers and shareholders to share in any benefits.

The Missouri Public Service Commission (PSC) has approved an experimental alternative regulation plan for Union Electric Co., the largest regulated electric utility in the state. The new plan is part of a stipulation and agreement that includes a $30-million one-time customer refund and a $30-million annual rate reduction. The experiment (em scheduled to run between July 1, 1995, and June 30, 1998 (em involves a sharing of company earnings between ratepayers and shareholders.

While approving a $58.8-million annual rate increase for Puget Sound Power & Light Co., the Washington Utilities and Transportation Commission (UTC) has also agreed to terminate its experimental periodic rate adjustment mechanism (PRAM).