Prospects look good for cheaper, independent electrical power in Ontario. The market is forcing an end to the current impasse on energy policy. Reforms are apt to include "wholesale access," which should arrive in the province before the year is out. Otherwise, Ontario may lose jobs to neighboring provinces and states.
The Minnesota Department of Revenue and the Minnesota Department of Public Service have released a study finding that electric and natural gas utilities pay higher taxes in certain categories than in other states in the region, which could put Minnesota at a disadvantage as the utility industry becomes increasingly competitive.
The study, mandated by the 1996 state Legislature, finds that in addition to paying high real estate taxes, utilities also pay personal property taxes on machinery and equipment. However, in 1996, Gov.
The Pennsylvania Public Utilities Commission has approved final guidelines for electric utility pilot programs for Pennsylvania's transition to a competitive retail electric generating market. The pilots will allow a limited number of residential, commercial and industrial customers to choose their electric suppliers.
The "Electricity Generation Customer Choice and Competition Act," signed into law by Gov. Tom Ridge Dec. 3, 1996, requires participation in the pilots by customers representing 5 percent of a utility's peak load for each customer class.
If truth is the first casualty of war, as we learned from author Mark Krebs ("It's a War Out There: A Gas Man Questions Electric 'Efficiency,'" December 1996, p. 24), then certainly the truth has been mutilated beyond recognition.
His article, which suggests that electric utilities have used conservation and demand-side programs improperly (to build electric load at the expense of natural gas!) is full of inaccuracies, misleading charts and other errors.
Central Illinois Light Co. unveiled its electric choice bill, which, if enacted, would allow residential customers to choose their electric suppliers beginning Jan. 1, 1998. The proposed legislation appears to conflict with another competition bill introduced Nov. 19, 1996 by the Illinois Coalition for Responsible Electricity Choice, which advocates a phase in of choice from 1997 through 2005. CILCO is the only major electric utility in Illinois that is not behind the Nov. 19 bill.
The CILCO bill, "Consumer Freedom To Choose Electricity Law," was introduced on Jan.
Testifying before the New Hampshire Public
Utilities Commission, the CFO of Northeast Utilities, John H. Forsgren, warned that a proposed electric deregulation plan could push subsidiaries Public Service Co. of New Hampshire, and North Atlantic Energy Corp. into bankruptcy.
Consulting company LaCapra Associates gave its deregulation report and recommendations on Jan. 3 to the PUC. The Jan. 20 hearing was aimed at examining stranded costs, and what portion of its $800 million stranded costs PSNH would be allowed to recover.
New York Power Authority trustees have approved agreements to help it establish an independent system operator for the statewide electric transmission system, which could be partially implemented in 1997, and fully implemented by mid-1998, if approved by the Federal Energy Regulatory Commission.
Members of the New York Power Pool, the authority and the state's seven investor-owned utilities have worked for nearly two years to develop a proposal for an independent system operator, or ISO. The proposal and associated tariffs were submitted to the FERC.
Central and South West Corp. President and CEO Dick Brooks is "extremely disappointed" with a proposed decision by an administrative law judge to increase annual revenues of its subsidiary, Central Power and Light Co., by $7.2 million. CPL in November 1995 had asked for a $71-million hike in retail rates.
A significant factor contributing to the difference is that the judge recommends reducing return on equity from 12.25 percent to 10.9 percent, which would reduce the rate increase by $30 million.
Due to troubles at the Kewaunee nuclear power plant, the Wisconsin Public Service Commission has agreed to allow its three utility owners to accelerate depreciation based on a plant retirement in 2002 instead of 2013. It also agreed to shorten the length of time decommissioning funds can be set aside.
The plant had shut down Sept. 20, 1996, for routine repairs and was expected to open one month later when damage to steam generators was found to be greater than expected. Replacing them would cost about $100 million.
Myth 1. RTP increases the utility's costs and revenue requirements. %n1%n
Reality 1. A well-conceived RTP program reduces the utility's costs and revenue requirements.
RTP programs can reduce peak demands for power, increase off-peak demands, and reduce the need for additional peak-load capacity. This increase in efficiency can lead both to higher company profits and greater customer savings. As the electric industry becomes more competitive, these savings will flow to those customers most responsible for lowering the utility's costs.