Perspective

Despite all the talk, despite keen interest in certain industry sectors, and despite federal legislation, increased competition in the electric power industry is far from certain. Unlike other deregulated industries, electric power is primarily regulated by state public utility commissions (PUCs) (em not by a federal regulatory agency. The debate over the values and benefits of competition as opposed to regulation will have to take place over and over again.

Mass. Utilities Settle Stranded Investment Issues

The Federal Energy Regulatory Commission (FERC) has accepted a settlement agreement between Massachusetts Electric Co. (ME), the Massachusetts Bay Transportation Authority (MBTA), and Boston Edison Co., which decides stranded investment and wheeling issues arising from ME's loss of MBTA as a retail customer (Docket No. ER94-129-000). The case arose in 1991, when the Massachusetts legislature designated MBTA a "domestic electric utility," allowing MBTA to leave ME. MBTA then signed a wholesale supply agreement with Boston Edison.

Northern Border Plans Expansion

Northern Border Pipeline Co. has filed for federal approval to extend its pipeline system 218 miles deeper into the Midwest, at a cost of $370 million. Sponsors say the project could be in service by November 1997.

Consumers Power Targets "At-Risk" Customers

Consumers Power Co. has asked the Michigan Public Service Commission to approve a Special Competitive Service (SCS) rate to help retain industrial customers who threaten to leave the system. The SCS rate would be offered to customers who can obtain their power elsewhere and to new customers considering locating or expanding facilities in Michigan. "[A]pproval of this rate would grant Consumers Power the ability to negotiate special contracts with certain `at risk' large industrial customers which have competitive energy supply options," says Michael G.

Virginia Power Wins Dispute with IPP

Virginia Power emerged the winner in a lawsuit filed by an independent power producer (IPP), Doswell Limited Partnership, involving payments for wholesale electricity. The disputed payments total more than $100 million over a 25-year contract. Doswell owns a large nonutility power plant north of Richmond, VA, with a capacity of 726 megawatts, and sells electricity to Virginia Power. A portion of the IPP contract is based on a fixed

fuel-transportation charge for natural gas supplies.

PacifiCorp Seeks a Home on the Range

There's a new gunslinger in town, and it's heavyweight PacifiCorp. The Pacific Northwest utility is opening a marketing office in Las Vegas to gain access to large customers that may come up for grabs if retail wheeling comes to Nevada and Southern California.

Trends

Average generation costs for the nation's electric utilities fell in 1994, primarily due to reductions in delivered fuel prices. Production costs declined by 3.5 percent, averaging just $1.89 per kilowatt-hour (Kwh) by year's end.

The WSCC is the only NERC (North American Electric Reliability) region where production cost increased (em 2.6 percent in 1994 (em as reduced hydro output in California was replaced by more costly natural gas-fired generation.

Mailbag

In his article, "The Flawed Case for Stranded Cost Recovery" (Feb. 1, 1995), Charles Studness made many good points. Yet he omitted to mention one critical factor that influenced several utilities in the late 1970s to go ahead with new coal and nuclear capacity: the Carter Administration's 1978 Fuel Use Act, mandating that utilities cease burning natural gas by 1989.

For many companies operating in the south central United States, this requirement meant conversion or replacement of most existing capacity.

People

Charles B. Yulish was named v.p., corporate communications, for the U.S. Enrichment Corp. Yulish previously was executive v.p. and managing director of the E. Bruce Harrison Co. He began his career with the U.S. Atomic Energy Commission.

Dan Bart was promoted to the new position of v.p., standards and technology, to serve both the Electronic Industries Association and the Telecommunications Industry Association. Bart will retain his current responsibilities with TIA.

Allen Arvig, president of East Otter Tail Telephone Co.

Frontlines

The other day I read in the New York Times that evolution is dead. For humans, at least. It seems we don't have enough sabre-toothed tigers around anymore to cull the weak from the strong.

Now that doesn't mean Darwin was wrong. Few dispute his "survival of the fittest." But without the normal complement of predators, we're each as "fit" as the other. The Times article ("Evolution of Humans May at Last Be Faltering," William K. Stevens, March 14, 1995, p.