Finding the present industry structure incompatible with effective wholesale or retail competition, the New York Public Service Commission (PSC) has issued for comment a set of regulatory principles designed to guide the transi-tion to a more competitive electric industry (Docket C94E0952/94086). It said that the transition requires vigorous fair trade safeguards and forward-looking labor/management relations.
Our industry stands at the threshold of significant change. Competitive forces and significant technological advances beckon the nation's electric utilities to step forward. The electric industry has the opportunity to create a future that provides the benefits of competition to all customer groups. If we don't restructure, someone else will do it for us.
Over 300 bills were introduced in the first week of the new Congress that convened in January, among them a bill by Sen. J. Bennett Johnston (D-LA) aimed at correcting the government's seriously flawed nuclear waste storage program. Johnston heralded S.
EL87-53-003). The new rule comes as part of a case in which Connecticut Light and Power Co.
The seven regional Bell operating companies have formed a coalition (em the Alliance for Competitive Communications (em to spearhead their efforts to reform the nation's telecommunications laws. The group's central goal is to eliminate barriers to competition among local telephone, long-distance, and cable television companies by:
s Encouraging competition in all markets
s Protecting universal service
s Opening markets to all competitors at once
s Ensuring that all competitors in each market are regulated similarly.
Southern California Edison (SCE) has asked the Federal Energy Regulatory Commission (FERC) to halt the state's Biennial Resource Plan Update energy auction (BRPU). SCE charges that the California Public Utilities Commission (CPUC) violated the Public Utility Regulatory Policies Act (PURPA) and FERC regulations by reinstating the auction late last year.
SCE believes that the auction, which requires California utilities to enter purchased-power contracts, could increase its potential stranded costs by up to $4 billion (in nominal dollars).
The Federal Energy Regulatory Commission (FERC) will allow Aquila Power Corp., a power marketing subsidiary of UtiliCorp United Inc., to sell electricity at market-based rates, and has approved open-access transmission tariffs for UtiliCorp (Docket Nos. ER95-203-000 and ER95-216-000). Commissioner William L.
Annual Annual EPS
Close Close Percent 52-Wk 52-Wk Div Div Book P/E Last
Company Region 09/30/94 12/30/94 Change High Low Rate Yield Value Ratio 12 Mos. Electric Utilities AEP Company Inc. Midwest 31.38 32.88 4.78 37.38 27.25 2.40 7.30 22.68 11 2.94
Unicom Corp. Midwest 22.25 24.25 8.99 28.75 20.63 1.60 6.60 24.39 - -0.31
Union Electric Co.
In his article, "Why Taxes Don't Distort Emissions Trading" (Dec. 1, 1994, p. 37), Michael Thomas suggests that utilities should flow through the proceeds of emission allowance sales to ratepayers in the year of sale. His idea is that utilities can eliminate any net effect on current income taxes by matching the increased revenue (emissions sales proceeds) against a revenue decrease (lower rates charged to customers). Slam dunk. End of story. Unfortunately, it's not so simple.