MFS Communications Co. (MFS) has petitioned the Federal Communications Commission (FCC) to order monopoly local exchange carriers (LECs) to open access to the "local loop" for competitive telephone companies at a cost-based rate. The MFS "Open Loop Initiative" seeks to speed development of local telephone competition and to provide a choice of local carriers.

The local loop is that part of the local telephone network that physically connects the customer's premises to the LEC central office.

With the Clean Air Act Amendments of 1990 (CAAA) come many complex decisions for electric utilities. By now the majority of utilities have decided how they will comply with the clean air guidelines and acid rain program limits, at least for Phase I. But for those utilities that have selected coal switching as the preferred method of complying with the law, the task gets more complicated. Burn expensive low-sulfur coal and bank or sell allowances? Or burn just enough low-sulfur coal to meet the rules, and no more?

How do American electric utilities differ from water companies, telephone companies, airlines, insurance firms, food processors, newspapers, steel mills, and other industries in the United States? "They produce electricity and the others don't," you answer. Maybe, but the others can produce electricity, too, if they want to.

Sierra Pacific Resources and The Washington Water Power Co. have filed a report at the Nevada Public Service Commission on their proposed merger to form Resources West Energy (RWE), estimating a combined savings of $449 million over the next 10 years. As a result, the utilities propose to freeze rates until at least 2000, except for one limited price increase in Nevada in 1997 and selected adjustments for energy supplies or extenuating circumstances.

About 42 percent of the savings will result from consolidation of duplicate functions and reductions in the workforce.

In response to the recent vote by the Mescalero Apache Tribe approving creation of a temporary nuclear waste storage site on tribal lands in New Mexico, the consortium of 34 utilities seeking a spent-fuel site have geared up for action.

According to Scott Northard, project manager for the consortium, Northern States Power Co. (NSP) (em which has spearheaded the effort (em has met with the other utilities and found enough interest to move forward with the process. May 3 is the target date for firm utility commitments to the project.

The Wisconsin Public Service Commission (PSC) has initiated a proceeding to pursue development of a market-based approach to natural gas regulation (Docket No. 05-GI-108). A public hearing has been set for May 16. The PSC's goal is to remove barriers to competition and permit customers to choose their natural gas service. Under the model, the PSC would stop regulating a utility's natural gas costs when it finds that a competitive market has developed for a given class of service.

Rep. Curtis Seidlits, Jr. (D) has filed a 245-page telecommunications bill, H.B. 2128, in the Texas legislature. The bill seeks to move regulated local exchange carriers (LECs) to a more competitive arena. It also addresses issues such as infrastructure improvements, telemedicine, and the information highway. H.R. 2128 culminates two years of study by the Joint Interim Committee (House and Senate members) on Telecommunications on how to reform the way Texas telephone companies are regulated.

Virginia Power (VP) has asked the Virginia Corporation Commission to prevent a municipality, the City of Falls Church, from ousting VP as the provider of electric service (Case No. PUE9500). VP says the city notified the utility that it intended to establish either a municipal purchasing or marketing entity or an electric utility that would own or control enough transmission or distribution facilities to avoid the "sham wholesale transaction" prohibition of the Energy Policy Act of 1992.

When the New York Public Service Commission (PSC) asked the Federal Energy Regulatory Commission (FERC) to reform the contract prices of two independent power producers (IPPs), Lockport Energy Associates, L.P. and Saranac Power Partners, L.P., the move triggered a call to arms from the Independent Power Producers of New York, Inc. (IPPNY). And in the pitched battle that followed, IPPNY did indeed emerge victorious. The IPPs sell electricity to New York State Electric and Gas Co.

NUGs Take the Cake

I take great exception to the presumption of Messrs. Costello, Burns, and Hegazy ("How State Regulators Should Handle Retail Wheeling," Feb. 15, 1995) that retail wheeling's "day will come." This is the oft repeated but never proven siren's song of Elcon's John Anderson and the other industrial/ cogeneration groups. The authors write: "For retail wheeling to become politically palatable, legislatures and PUCs must address the question of how to minimize the negative effects on core customers in the short term." Why?