Does competition justify higher salaries for utility executives? Some regulators have suggested the opposite. Others argue that ratepayers must benefit directly from any incentives offered to utility managers.

The Vermont Public Service Board (PSB) recently forced stockholders to pay a share of executive compensation costs for two utilities (em Green Mountain Power Co. and Central Vermont Public Service Corp. (em that exhibited higher-than-average executive compensation, and capped compensation for rate cases.

One need only reflect upon the primary sponsors of current efforts to repeal section 210 of the Public Utility Regulatory Policies Act of 1978 (PURPA) to begin to understand the folly of these efforts for the nation. The sponsors do not represent electricity ratepayers, who are claimed to be overpaying billions of dollars as a result of PURPA.

The Federal Energy Regulatory Commission (FERC) has upheld its February 22 ruling that the California Public Utilities Commission (CPUC) violated federal law by not considering all electric power sources in determining the avoided costs of electric utilities (Docket Nos. EL95-16-001 and EL95-19-001). A unanimous FERC had found the CPUC's Biennial Resource Plan Update auction in violation of the Public Utility Regulatory Policies Act (PURPA).

Tennessee Valley Authority (TVA) chairman Craven Crowell says he will resist General Accounting Office (GAO) pressure to raise TVA rates. According to Crowell, a forthcoming GAO report criticizes TVA for not raising rates to reduce debt, and suggests privatization. "Everyone recognizes that TVA's debt is large, but the size of the debt is not as important as our ability to manage it," Crowell maintains, noting that a recent study by utility consulting firm Palmer Bellevue concludes that TVA can remain competitive by effectively managing the debt.

The Nuclear Regulatory Commission (NRC) has amended its regulations on nuclear plant license renewal to provide a "more stable and predictable regulatory process." The amended regulations will enhance the credibility of the NRC's existing regulatory oversight process and licensee maintenance programs by narrowing the number of systems, structures, and components that must be reviewed during the renewal process. Operating licenses are granted for periods up to 40 years, and may be renewed for 20 more if NRC requirements are met.

The Federal Energy Regulatory Commmission (FERC) has approved a comprehensive settlement that issues a new license allowing the Seattle City Light Co. to continue operating the 689-megawatt Skagit River hydroelectric project. In exchange, the utility will spend $100 million on protecting and enhancing the natural and cultural resources around the plant (Project No. 553-005, Docket No. EL78-36-000).

ER94-1288-004).

WRTA had received conditional approval last October, but members were directed to provide comparable electric transmission service and file a single, regional transmission plan.

For the first time, the Federal Energy Regulatory Commission (FERC) has directed a power pool, the Pennsylvania-New Jersey-Maryland (PJM) Power Pool, to provide electric transmission services to an electric utility, Duquesne Light Co. (Docket Nos. TX94-10-000 and TX94-8-000). It gave PJM 70 days to negotiate rates and terms with Duquesne, which had asked for transmission service to market excess capacity and energy. The FERC ordered the 11 members of the pool to negotiate jointly with Duquesne, and to charge comparable rates.

On June 6 the Energy Production and Regulation Subcommittee of the Senate Energy and Natural Resources Committee, chaired by Sen. Don Nickles (R-OK), held a hearing on legislation S. 708, The Electric Utility Ratepayer Act, which would repeal section 210 of the Public Utility Regulatory Policies Act (PURPA), which mandates purchases from qualifying facilities (QFs) at avoided-cost rates.

Central and South West Corp. (CSW) has notified El Paso Electric Co. (EPE) that it has breached the companies' merger agreement by participating in discussions about and spending large sums on a possible stand-alone reorganization plan. CSW said it was not terminating the merger, but merely protecting its rights. On May 22, CSW received a request from EPE to extend the merger agreement for six months, until December 8, 1995.