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Law & Lawyers

Municipals to Pool

The Oklahoma Municipal Power Authority (OMPA) and the Public Utilities Board (PUB) of the City of Brownsville, TX, have announced their intent to form a municipal power pool spanning four states. OMPA is a full and partial requirements wholesale supplier to 35 municipal electric systems in Oklahoma. PUB owns coal- and gas-fired generation plants. The two entities offer a combined supply resource of about 800 megawatts, but rely on the transmission system of Central and South West (CSW).

Byline: 
Lori A. Burkhart
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The Feds Can Lead...By Getting Out of the Way

Stranded investment is mostly intrastate.

Let the states work free of uncertainty.

Recent activity in both chambers of the U. S. Congress shows federal lawmakers seeking to help the electric industry move toward competition. More than likely, election-year politics will stand in the way. Even so, Congress can go one better: It can step aside and let the states lead the way.

The greatest concern lies in stranded costs (em utility assets and obligations valued on company books at above-market levels.

Byline: 
Steven M. Fetter
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Texas Utility Pushes Pooling

Central and South West Corp.'s subsidiary, Central Power and Light Co. (CPL), has proposed that all ERCOT nonnuclear utilities (em including IPPs, co-ops, and municipals (em become part of a competitive wholesale bulk power pool run by an independent system operator (ISO).

Transmission and distribution companies would continue to own and operate power lines, purchase all nonnuclear generation from the pool, and assume responsibility for actual delivery.

Byline: 
Lori A. Burkhart
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Texas-New Mexico Power Proposes Choice

Texas-New Mexico Power Co. (TNMP) has asked the Texas Public Utility Commission to approve "Community Choice," which would allow state customers to choose their energy providers beginning in January 1997. After a five-year transition period, customers would be permitted to choose both their electric and energy services providers. During the transition, TNMP would be allowed to reduce the stranded costs of its only generating plant, TNMP One, by keeping rates, including fuel and purchased-power costs, at current levels.

Byline: 
Lori A. Burkhart
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People

Michael Baly, American Gas Association president and CEO, will chair the National Energy Foundation. He replaces Richard Lawson, president of the National Mining Association. Arthur Wiese, Jr., public affairs v.p. of the American Petroleum Institute, was elected vice chair.

Attorney Karen A. Tomcala was promoted to the staff of James J. Hoecker at the Federal Energy Regulatory Commission. Previously, Tomcala practiced in the FERC's electric rates and corporate regulation section.

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Michigan Sidesteps Wheeling Injury

The Michigan Public Service Commission (PSC), facing questions on how fast it will move on retail wheeling and direct access, has suspended scheduled hearings on a request by MasoTech Forming Technologies, Inc. to set up a "cost-based, fair, and competitive" electric transportation rate.

MasoTech, a customer of Detroit Edison Co., had asked the PSC how and when it intended to implement recommendations concerning direct access offered by the Michigan Jobs Commission and transmitted to the PSC earlier this year by Gov. John Engler.

Byline: 
Phillip S. Cross
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PUC Uphelds Selective Rate Discounting

The Maine Public Utilities Commission (PUC) has declined as a general policy to require electric utilities that award a rate discount to an individual customer to offer the same discount to the customer's competitors.

The case involved Central Maine Power Co., which had negotiated a discount with Southern Container Corp. under its alternative rate plan. Union Camp Corp., a competitor in the corrugated box business, had then asked for a comparable discount, complaining of discrimination.

Byline: 
Phillip S. Cross
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Idaho Power Wins Favorable IRS Ruling

The Internal Revenue Service (IRS) has issued a favorable ruling allowing Idaho Power Co. (IP) to accelerate amortization of accumulated deferred investment tax credits (ADITC). [Idaho Power had asked the Idaho Public Utilities Commission for permission to defer and amortize costs associated with its internal restructuring.] The ruling enables the utility to accelerate amortization of ADITC when its consolidated year-end return on common equity falls below 11.5 percent.
Byline: 
Lori A. Burkhart
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NRC OK's Trojan Decommissioning Plan

The Nuclear Regulatory Commission has approved Portland General Electric Co.'s (PGE's) decommissioning plan for the Trojan nuclear power plant. The Trojan plant, which began operating in 1975, was permanently shut down in January 1993. PGE filed its decommissioning plan in January 1995, proposing to move the spent fuel to onsite dry cask storage, dismantle radioactive structures, and decontaminate the site for unrestricted use (except for the dry-cask storage area). t

Lori A. Burkhart is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.

Byline: 
Lori A. Burkhart
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