Law & Lawyers

The City of Alma, Mich., has asked the Federal Energy Regulatory Commission to consider whether Consumers Energy is entitled to recover stranded costs from customers in the municipality that switches from CE's system to a municipal electric system if the city creates one.

A consultant hired by Alma already has determined the city could own and operate a municipal utility, which would result in cost savings in excess of 20 percent. The savings estimate has been challenged by CE, formerly Consumers Power Co., because the analysis does not contain a stranded-cost payment.

Finding that Alabama Power Co. has a clear need for additional capacity in the near future (em reserves for the year 1999 will drop to approximately 9.2 percent (em the Alabama Public Service Commission has authorized the utility to pursue a utility-owned cogeneration project as the least-cost resource option.

The company plans to install a natural gas-fired cogeneration plant at an industrial facility owned by one of its larger customers. The utility will own, design, maintain and operate the

100-MW facility.

Sound bites from state and federal regulators.

Electric Briefs

Environmental Review. California halts work on report of environmental impacts of electric restructuring and new market structure, finding no need for independent review of commission proposals after state Legislature had sanctioned "a more competitive scheme" last summer when it passed Assembly Bill 1890. R.94-04-031, I.94-04-032, Decision 96-12-075, Dec. 12, 1996 (Cal.P.U.C.).

Electric Restructuring.

N.H. Discovers What Residents Really Want (em And Don't

While electricity consumers are interested in lower bills, they're unlikely to change suppliers even though they could save money.

That's one of the seemingly conflicting results of a survey of 400 people who participated in the New Hampshire electric pilot program. The program, started in late May 1996, targeted 17,000 customers, and still is under way.