Law & Lawyers

In Brief...

Sound bites from state and federal regulators.

Contel Merger. California removes stay on Contel/GTE merger. Orders equal sharing of short- and long-term economic benefits between ratepayers and shareholders. Fessler dissents, finding that the utility "had not established an entitlement to 50 percent of these savings." A.90-09-043, Decision 96-04-053, Apr. 10, 1996 (Cal.P.S.C.).

Local Telephone Resale. California requires two of the state's major LECs to offer a broad range of services for resale at wholesale rates.

Reps. Ask FERC for PURPA Reforms

Eleven members of the U.S. House of Representatives have written to Chair Elizabeth A. Moler asking the Federal Energy Regulatory Commission (FERC) to address competitive issues arising from the Public Utility Regulatory Policies Act (PURPA).

Lakehead Pipe Line Appeals FERC Ruling

The Federal Energy Regulatory Commission (FERC) has refused to rehear or modify a June 15, 1995, rate order (Opinion 397) that denied Lakehead Pipe Line Partners, L.P. any income-tax allowance related to "curative allocations" under section 704(c) of the Internal Revenue Code that increase the general partner's taxable income beyond his or her proportion of company ownership.

The ruling (Opinion 397-A) affirms Lakehead's entitlement to a tax allowance based on the income attributable to corporate partners, but imposes a limit.

Santa Outlines FERC's Future Focus

The Federal Energy Regulatory Commission's Donald F. Santa, Jr. looked beyond Order 888 electric restructuring when he addressed the second annual DOE/EPRI Executive Conference in Washington, DC, on May 21. According to Santa, the post-Order 888 electric agenda will be marked by three cross-cutting issues.

First, the FERC will grapple with market power in an open-access environment. While open access will mitigate the market power of transmission-owning utilities, the FERC needs to consider market power stemming from generation concentration.

Joules

The United States Telephone Association has called for more voluntary interconnection agreements between telecom companies, claiming that the resulting competition will bring consumers more choices. USTA cited more than 50 signed agreements with companies that want to connect to the local network, and nearly 500 ongoing negotiations.

The Federal Energy Regulatory Commission has approved the Gas Research Institute's request for a 20-percent cut in its 1996 research, development, and commercialization budget.

People

William A. Fox was named president of The Peoples Natural Gas Co. and Hope Gas, Inc. (em both subsidiaries of Consolidated Natural Gas Co. Fox comes from Virginia Natural Gas, another subsidiary. Succeeding him is Jerry L. Causey, VNG's operations v.p. Francis J. Corbett, formerly g.m. of VNG's northern division office, steps into Causey's post. Jose M. Simon was made controller at the corporate office. Joseph R.

Frontlines

It's August again. In Washington. Anyone with any sense is looking to get out of town and hole up at the beach. Anyone, that is, except a magazine editor.

When I wrote this column on July 11, Rep. Dan Schaefer (R-CO) had just concluded a news conference to announce his "Electric Consumers' Power to Choose Act of 1996." Reams of testimony were pouring in, demanding to be read. Faxes arrived nonstop all afternoon with offers from experts to provide comments, quotes, or some unique spin on the day's events.

Research and Renewables: Funding at the National Energy Labs

Shrinking budgets force staff cuts, but some projects

find friends in high places.

"They're putting the best face on the inevitable."

Funding for renewable energy for government/ industry research partnerships took another beating early this summer (em and that's on top of a $113-million cut suffered this fiscal year.