Become a PUF Member Organization

Law & Lawyers

Maine PUC OKs Hannaford Deal

The Maine Public Utilities Commission (PUC) has OK'd a much-publicized special rate agreement between Central Maine Power Co. and one of its large customers, the Hannaford Brothers Co., which operates supermarkets.

Nevertheless, the PUC declined to order the utility to offer similar rates to Hannaford's competitors in the supermarket business. It advised that it cannot attempt to equalize electric rates among business competitors, or to reduce advantages that large businesses have over smaller businesses.

Byline: 
Phillip S. Cross
Read Entire Article

Industrial Customer Can Choose Subtransmission

The Maine Public Utilities Commission (PUC) has ruled that Central Maine Power Co. acted in a discriminatory manner when it refused to grant a request by a large industrial customer, Yorketowne Paper Mills of Maine, to rate classes to time-of-use subtransmission.

The case was notable since the customer's employees had filed a complaint alleging improper denial of service and seeking reparation for overcharges. See, Yorketowne Paper Mills of Maine, et al. v. Central Maine Power Co., 170 PUR4th 535 (Me.P.U.C.1996).

Byline: 
Phillip S. Cross
Read Entire Article

Commission Shelters Utility QF Capacity Payments

The Massachusetts Department of Public Utilities (DPU) has again turned down a request by a cogeneration developer (QF) to collect capacity payments for the entire 20-year term of a purchased-power contract with Commonwealth Electric (CE), despite conflicting advice from the state supreme court.

Last year, in remanding a similar DPU ruling, the Massachusetts Supreme Court had suggested that a contract price violates the Public Utility Regulatory Policies Act (PURPA) if it does not include any capacity payments for most of its term.

Byline: 
Phillip S. Cross
Read Entire Article

In Brief...

Sound bites from state and federal regulators.

Telco Interconnection Rules. Federal appeals court enjoins pricing aspect of rules published August 8 by the Federal Communications Commission to govern sale at wholesale of local exchange service elements by Bell system local carriers to new competitors (who would resell such elements to provide competitive local telephone services). Finds possibility of irreparable harm plus likelihood that Bell carriers might prevail on the merits of jurisdictional issues. No. 96-3406, Oct. 15, 1996 (8th Cir.).

Read Entire Article

Financial News

Imagine That!

A Stock-price Premium for DSMA rise in DSM spending (as a percentage of total expenditures) indicated

an increase in market-to-book ratio.

For electric utilities, financial and managerial attributes such as rate of return or the dividend payout ratio often exert a strong positive effect on the market-to-book (M/B) ratio (em the ratio of the company's stock price divided by book value.

Byline: 

Philipp Degens and M. Khawaja

Read Entire Article

FCC Telco Decision Irks Georgia Regulator

Georgia Commissioner Stan Wise says he is very unhappy with the decision by the Federal Communications Commission (FCC) to require states to deaverage the cost of providing telephone service for companies that want to compete with the regional Bell operating carriers, such as BellSouth.

(The U.S. Court of Appeals for the Eighth Circuit enjoined some aspects of the FCC rules on October 15. See, Courts and Commission, In Brief, p.

Byline: 
Lori A. Burkhart
Read Entire Article

Joules

Entergy Corp. signed a letter of intent to acquire National Security Service, a security monitoring company that operates in North Carolina and Alabama. Entergy claims the acquisition places it among the top alarm companies in the country.

K Energy, Inc. has begun "Simple ChoiceSM" (em energy, communications, and "infotainment" services in one package, paid with one bill.

Read Entire Article

Duff & Phelps Applauds Mass. Atty. General's Plan

The Massachusetts Attorney General and the New England Electric System (NEES) have unveiled a plan to restructure electric utilities in Massachusetts (em "Consumers First."

The plan would allow all residential and business customers of investor-owned utilities to choose their electric supplier on January 1, 1998, and mandates that all customers receive a minimum 10-percent reduction on monthly bills. Existing purchased-power contracts would be honored, and approved utility investments recovered, subject to independent market valuations.

Byline: 
Lori A. Burkhart
Read Entire Article

NY IOUSs Sue PSC Over Restructuring Decision

Investor-owned utility (IOU) members of the Energy Association of New York have joined in a lawsuit against the New York Public Service Commission (PSC) and its May 16 Competitive Opportunities decision, which called for a wholesale competitive market in 1997 and introduction of retail access in 1998.

The IOUs claim the lawsuit does not challenge the introduction of competition to New York's electric utility industry, but targets the "vague language" and incomplete guidelines.

Byline: 
Lori A. Burkhart
Read Entire Article