With no need for new capital, utilities have lost political pressure, exposing the regulatory compact as an illusion.Recovery of stranded investment today marks the central issue in the debate over electric utility competition. Unfortunately, the utility argument in favor of recovery is flawed.
Noting the growing global demand for new sources of energy, Congress tailored the Energy Policy Act of 1992 (EPAct) to make U.S. public utility holding companies more competitive abroad. First, it eased the Securities and Exchange Commission review of U.S. investment in foreign energy facilities. Second, it sought to expand U.S. participation in foreign energy-related projects to include U.S. technology as well as investment dollars.
The California Public Utilities Commission (CPUC) has decided to adopt a "wait and see" approach in general rate proceedings for utilities affected by its generic industry restructuring case. Southern California Edison Co. asked the CPUC to postpone ruling on marginal cost, rate design, and cost-allocation issues in its 1995 general rate case until it issues a policy order in the restructuring proceeding.
The Washington Utilities and Transportation Commission (UTC) has refused to mediate a dispute between Washington Water Power Co. and a bidder in the utility's 1991-92 resource procurement auction. The bidder, SESCO Inc., complained after the utility found its demand-side management (DSM) program proposal not cost-effective. The UTC said the decision to close the bidding and not pursue a contract with SESCO was a matter for review in the utility's next general rate case.
Citing its desire to promote a fully competitive wholesale market for electric power, the Arkansas Public Service Commission (PSC) has waived restrictions on serving wholesale and retail loads in the state for Entergy Power Inc. Entergy had proposed to sell Oklahoma Gas & Electric Co. power wheeled from two generating facilities by Arkansas Power & Light Co. (AP&L), an Entergy affiliate.
The Rhode Island Supreme Court has ruled that the state commission did not err when it refused to reverse a decision by the Town of Portsmouth to rezone certain property from industrial to residential. Newport Electric Corp. had protested that the change could make it liable to EMF damage claims because of overhead power lines in the area.