PSC Washes Hands of QF Contract Dispute

The Florida Public Service Commission (PSC) has refused to settle a dispute between Florida Power Corp., an electric utility, and numerous qualified cogenerating facilities (QFs) over pricing terms contained in negotiated purchased-power agreements previously approved as cost-effective. The PSC ruled that interpretation of provisions in negotiated, as opposed to approved standard-offer, contracts between utilities and QFs was a matter for the courts and rejected allegations that review and approval gave the PSC continuing jurisdiction to interpret the contracts.

Interruptible Tariffs Labeled Burden

The Pennsylvania Public Utility Commission (PUC) has approved tariff revisions proposed by Pennsylvania Power & Light Co. (PP&L), an electric utility, to limit the availability of its interruptible services. The PUC also directed PP&L to file new interruptible rates at its next rate case, based on the cost of providing such service and on the value to the utility of maintaining its interruptible load.

IntraLATA Dialing Parity Spreading

To further competition in the state's telephone industry, the Florida Public Service Commission (PSC) has decided to require local exchange telephone carriers (LECs) to offer intraLATA presubscription as part of the access services provided for competitors in the toll-call market. It found the lack of "1+" dialing parity (experienced by customers who choose interexchange carriers (IXCs) rather than LECs for intraLATA toll calling) a competitive barrier that could be removed without diminshing access to basic telephone service for Florida consumers.

LEC Rejects Price-cap Plan

While reconsidering an earlier rate case order for New England Telephone & Telegraph Co., a telecommunications local exchange carrier (LEC), the Vermont Public Service Board (PSB) has approved an incentive regulation plan for the LEC and set out a series of recommendations to guide the development of a full price-cap regulation plan. Nevertheless, the PSB noted that a problem had developed in the case as a result of combining the revenue requirement aspect of the rate proceeding with consideration of the LEC's price-cap plan.

The Triumph of Markets in Natural Gas

During the last decade, the natural gas industry in the United States has been transformed from a heavily regulated business to one facing competitive markets. This transformation grew out of the failure of regulation; regulators, suppliers, pipelines, and customers all played a part. It continues today as the industry restructures and builds new institutions.A series of regulatory crises forced deregulation in stages: First, wellhead prices; second, gas contracts; and finally, pipeline transportation.

Learning from California's QF Auction

California's 1993 qualifying facility (QF) auction dramatically illustrates problems that can be encountered in structuring auctions for electric utility solicitations of supply-side resources from qualifying cogeneration and small power production facilities.

In the 1993 California QF auction, three California utilities were to select QFs that would be awarded long-term purchased-power contr

To Wheel or Deal? Electric Industrial Pricing in California

Electric restructuring weighs heavy on the mind these days. Drastic remedies are born more of hope than vision. Look at the April 20, 1994, proposal from the California Public Utilities Commission (CPUC) for mandated retail wheeling (the Electric Restructuring Order, often referred to as the "Blue Book").1

The Blue Book became a catalyst for national debate. But the Blue Book did not create the problem; it only reacted.

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.

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.

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.