Law & Lawyers

Electric's Telecom Project Draws Complaint

The New Jersey Board of Public Utilities (BPU) has denied attempts by MicroNet, a microwave telecommunications firm, to head off possible competition from Jersey Central Power and Light Co., which planned to upgrade its existing two-way radio communications systems by installing antennas and microwave dishes on new and existing towers spread across the state.

MicroNet had claimed the upgrades would create excess capacity and questioned the possibility of ratepayer subsidies.

Nuclear Plants Get High Marks

The Nuclear Energy Institute reports that nuclear power plants are exceeding performance goals for safety and reliability. In 1995, the U.S. nuclear industry:

s Achieved the highest capability factor ever: a median value of 82.6 percent. (Unit capability is a percentage of the most electricity a plant can produce, limited by plant management.)

s Reduced unplanned automatic shutdowns or scrams by almost 90 percent since 1980.

s Met safety performance in 94 percent of the systems.

Munis See the Lite

The search for cheaper electricity is in full swing, from the East Coast to the West.

Orange and Rockland Utilities, Inc. of Pearl River, NY, proposes that 1,500 residential customers, along with industrial and commercial businesses, be allowed to pick their electric power supplier. The proposal, called "PowerPick," has been endorsed by New York Public Service Commission staff, the Industrial Energy Users Association, and the state Consumer Protection Board.

LECs Get Price Caps; IXCs Told to Reduce Rates

The North Carolina Utilities Commission (NCUC) has approved price-cap regulation plans for four major telecommunications local exchange carriers (LECs) in the state: BellSouth Telecommunications Inc. (BellSouth), Carolina Telephone and Telegraph Co. (Carolina), Central Telephone Co. (Central), and GTE South, Inc. (GTE). The NCUC rejected allegations by AT&T Communications of the Southern States, Inc., an interexchange carrier (IXC), that a separate "general rate case" was needed to gauge how the shift to price regulation affected LEC earnings.

Study Calls Muni Trend "Traditional"

Coopers & Lybrand has released its 1996 Electric Municipalization Review, which examines the two municipalizations completed since the Energy Policy Act of 1992: Broken Bow, OK, and Bozrah, CT.

Broken Bow, which began operating in 1995, serves the new six-megawatt (Mw) load of one industrial customer and owns no electric facilities; Public Service Co. of Oklahoma serves town residents. The Town of Bozrah had been served by a privately held corporation, Bozrah Light & Power (BL&P), whose owner was retiring and wanted to sell.

N.C. Denies Self-generation Exemption

The North Carolina Utilities Commission (NCUC) has rejected a request by proponents of a plan to provide electricity and process steam for a large industrial electric user in the state for a declaration that the plan would not subject the participants to regulation as public utilities under state law.

Under the proposal, National Spinning Co., Inc., a current purchaser of over $3 million in annual industrial electric services from Carolina Power & Light Co., would build facilities to gasify wood waste, produce steam, and generate up to seven megawatts of electricity in partn

Prudential Predicts Revenue Losses for All Utilities

In a recent report, A Free Market for Power Would Mean Revenue Losses for All Utilities (em But Some Would Suffer More Than Others, Prudential Securities simulated a competitive electricity market (em assuming that all industrial and commercial customers would be able to choose their electric supplier by 1998 (em to find out how a completely free market for power would affect utility revenues, earnings, and dividends.

The competitive risk study statistically measured marginal costs, then created a simulated spot-market electricity price for each of the 11 geographical reg

N.Y. Relaxes Regulation of AT&T

Finding the state's long-distance telecommunications market sufficiently competitive, the New York Public Service Commission (PSC) has relaxed price controls for AT&T Communications of New York, Inc., an interexchange carrier (IXC) currently regulated as a dominant provider of long-distance services. Under the settlement agreement, AT&T will freeze price floors and ceilings for basic long-distance service (message toll service, or "MTS") for five years and give customers a one-time rate reduction to reflect lower access charges AT&T must pay to local exchange carriers in the state.

Competing Bids Filed for Cajun

Ralph Mabey, trustee for Cajun Electric Power Co-op. in its bankruptcy proceeding, has filed a reorganization plan at the Federal District Court in Baton Rouge, LA. Mabey chose a bid from NRG Energy, Inc. and Zeigler Coal Holding Co.: about $1.1 billion in cash to purchase most of Cajun's nonnuclear assets. However, that offer faces a competing bid filed by the Cajun Electric Members Committee, Southwestern Electric Power Co. (SEP), and Gulf States Utilities.