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Law & Lawyers

Ohio Won't Bar Resale of Service<

The Ohio Public Utilities Commission (PUC) has reaffirmed an order issued on May 8 in which it struck down a tariff proposed by Toledo Edison Co. that would have barred resale of service by commercial customers. The PUC rejected allegations by Toledo Edison that the ruling constituted a breach of its duty to regulate electric service to end users. It declined to regulate disputes that it characterized as occurring between landlords and tenants, where the landlord is not operating as a public utility. See, Brooks, et al. v. Toledo Edison Co., Case No.

Byline: 
Phillip S. Cross
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New Estimates of Nuclear Stranding

R.J. Rudden Associates, Inc. (RJRA) estimates U.S. nuclear plant stranded costs at $65.5 billion ($1994) if electric industry restructuring is fully implemented in 1997.

The firm's analysis relied on historic cost and performance data for each facility, and on RJRA projections of regional competitive prices for capacity and energy. RJRA said a slower restructuring would reduce the investment at risk to between $46.3 billion (year 2000) and $23.2 billion (year 2010).

Byline: 
Lori A. Burkhart
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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

Byline: 
Phillip S. Cross
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Natural Gas Combo to Serve One Million

Atmos Energy Corp. and United Cities Gas Co. have announced an agreement to merge in a share-for-share exchange of common stock.

Atmos distributes natural gas to about 673,000 customers through its operating subsidiaries, Energas Co., Greeley Gas Co., Trans Louisiana Gas Co., and Western Kentucky Gas Co. United Cities distributes gas to about 310,000 customers, operates gas storage facilities, and distributes propane to 25,000 customers.

Byline: 
Lori A. Burkhart
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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.

Byline: 
Phillip S. Cross
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Amended Cajun Plan Lowers Rates

Ralph R. Mabey, trustee in the Chapter 11 bankruptcy proceedings of Cajun Electric Power Co-op., has entered into an amended asset-purchase agreement with Louisiana Generating LLC for the purchase of Cajun's nonnuclear assets. Louisiana Generating LLC is the joint-venture affiliate of NRG Energy, Inc. and Zeigler Coal Holding Co.

The NRG/Zeigler bid was selected in April, but on July 15, the bankruptcy court rejected the plan's buyer-protection provisions.

Byline: 
Lori A. Burkhart
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Telco Business Services Ruled Noncompetitive

An Illinois appeals court has upheld a ruling by the Illinois Commerce Commission (ICC) that certain services offered to business customers by Illinois Bell Telephone Co. are noncompetitive.

The local exchange carrier (LEC) had reclassified the services (distance-sensitive calls, credit card calls, and operator assistance) as competitive to take advantage of pricing flexibility permitted under the ICC's regulatory reforms for the industry.

Byline: 
Phillip S. Cross
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Telephone Rate Plans Said to Frustrate Competition

The Office of the Ohio Consumers' Counsel has gone on record at the Ohio Public Utilities Commission (PUC) as opposing any application by Cincinnati Bell Telephone Co. to amend its present alternative regulation plan to set rates using a price cap tied to the consumer price index, and to deaverage rates.

The Consumers' Counsel claims that the amendment must be considered as a new plan due to the substantive changes it proposes. It adds that, if enacted, the changes would impose rate hikes and discourage consumer choice for local calling.

Byline: 
Lori A. Burkhart
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Oregon Unbundles LEC Rates

The Oregon Public Utility Commission (PUC) has unbundled services offered by the state's major local exchange carriers (LECs) into a series of network building blocks, pricing the new service offerings in conformance with policies adopted in earlier cases. The ruling retains statewide average rates for local exchange service across all density and distance categories.

The PUC also required the LECs, U S WEST Communications, Inc. and GTE Northwest, Inc., to impute the price they charge to other carriers for basic network functions when setting their own prices.

Byline: 
Phillip S. Cross
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Perspective

In August, the Federal Communications Commission (FCC) issued rules to show how new competitors can enter the local markets for telecommunications (em forever relegating local telephone monopolies to that switchboard in the sky.

Byline: 
Stanley W. Hulett
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