Law & Lawyers

Ohio Reviews Gas Regulation

The Ohio Public Utilities Commission (PUC) has opened a docket to examine regulatory reform of the state's natural gas local distribution companies (LDCs), responding to a new state law (Amended Substitute House Bill 476) signed June 18 by Ohio Gov. George Voinovich. It directed its staff and interested parties to develop ideas for alternative regulatory plans and for LDCs to enter the "commodity sales" market.

Ohio Repeats Warning to Centerior

The Ohio Public Utilities Commission has reaffirmed its "recommendation" (issued April 11 in a rate case order) that Toledo Edison Co. and Cleveland Electric Illuminating Co. (subsidiaries of Centerior Energy Corp.) should write down $1.25 billion in assets over the next five years to avoid the danger of even greater commission-mandated cost disallowances.

The PUC rejected arguments that it should have ordered the write-down directly.

Maine to Examine "Energy-Related" Distribution Services

The Maine Public Utilities Commission (PUC) has opened a docket to investigate how and to what extent it should regulate "energy-related products and services other than electric service" offered by Central Maine Power Co.

In lieu of price regulation, the utility had proposed setting prices to cover its marginal cost for

specific offerings, including: 1) inspection and maintenance of customer-owned substation facilities, 2) energy control systems and services, 3) construction of customer-owned pole lines, and 4) maintenance and repair of customer-owned lighting equ

PUC to Hear Complaint by Customer's Employees

The Maine Public Utilities Commission (PUC) has agreed to hear a complaint by employees of an industrial customer of Central Maine Power Co. (CMP). The employees allege unfavorable pricing actions against their employer, Yorktowne Paper Mills, including denial of service at the requested voltage. The complaint asks for reparations for prior overcharges.

Florida Rejects Electric Discount Plan

The Florida Public Service Commission (PSC) has rejected a proposal by Gulf Power Co. to offer negotiated contracts to large, "at-risk" customers that would otherwise leave the system to find power from another source.

Cost Decoupling Placed on Hold

While approving an increase in base rates of $26.8 million for Pacific Power and Light Co., the Oregon Public Utility Commission (PUC) has rejected a proposal to adopt a revenue decoupling mechanism and establish a systems benefits charge as part of the rate ruling.

Indiana Launches LEC Competition

The Indiana Utility Regulatory Commission (URC) has opened the state's local telephone market to competition by ordering local exchange carriers (LECs) to offer "bundled resale" of retail local exchange and related services.

The ruling applies to the state's two major LECs, Ameritech and GTE North, as well as to other smaller companies subject to the provisions of the federal Telecommunications Act of 1996 (Act).

Maine Plan Would Spin Off Generation

A draft plan issued by the Maine Public Utilities Commission (PUC) to restructure the state's electric industry, currently under review at the state legislature, would require investor-owned utilities to separate operation of generation assets from the rest of the company by 2000, and to divest themselves of those assets by 2006.

The plan would also require retail electric suppliers to maintain a minimum block of renewable supply, and recommend that the state legislature fund low-income assistance currently provided as part of utility rate structures through a general tax

Marginal Cost Drives Electric Rate Design

The Maine Public Utilities Commission (PUC) has approved a new multi-year revenue requirement and rate design plan for Maine Public Service Co. (MPS) designed to serve as "the starting point for MPS and its customers' participation in an increasingly competitive market."

The plan allocates an overall revenue increase of 4.4 percent to produce a 5.5-percent increase in residential rates and a 7.5-percent hike in commercial rates. Other customer groups will see smaller boosts in rates or slight reductions.

California Backs Loans for WPEX Software

The California Public Utilities Commission (CPUC) has authorized Pacific Gas and Electric Co., Southern California Edison Co., and San Diego Gas and Electric Co. to guarantee notes totaling $250 million for loans to two trust funds to support the development of computer hardware and software for the state's proposed independent system operator (ISO) and power exchange (WEPEX), but commissioner Jesse J. Knight has dissented, worrying about cost control.

As noted in a parallel story ("PUC Loans Would Bolster ISO, Power Exchange," Headlines, p.