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Law & Lawyers

In Brief...

Sound bites from state and federal regulators. Gas Load Building. Finding no protest from electric utilities, North Carolina waives requirements for preliminary cost-benefit analysis and approves incentive programs for Piedmont Natural Gas Co. Inc., designed to boots gas load by installing commercial gas cooking equipment at community colleges for use in culinary degree programs. Commission tells company to conduct a cost-effectiveness analysis as soon as it can gather the necessary data from actual operating experience. Docket No. G-9, Sub 377, Jan. 31, 1997 (N.C.U.C.).

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Perspective

As I leave the electric utility business after 28 years as an engineer and analyst I would like to relate some thoughts on what makes this business special, even as it gives way to competition. Let me offer some advice to "local" electric utilities on how to keep at bay the "Mega Marketers" and "PanElectrics" of the world, who will soon appear to romance away their customers. Keep your "home-field advantage." Capitalize on your traditional strengths and enduring relationships. These bonds represent a wealth of goodwill earned over years of working with customer communities.

Byline: 
Sidney L. Spencer
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FERC Revisits Order 888

Tightens postings rules for transmission discounts; expands jurisdiction on stranded costs in municipal annexations.

The Federal Energy Regulatory Commission on Feb. 26 revisited its Order 888 open-access transmission decision, reaffirming its core framework but making changes by granting rehearing on two key issues.

Stranded-cost recovery associated with municipal annexation was revisited. In addition, the FERC updated the discounting of transmission services (See, Order 888-A, Docket Nos. RM95-8-001, RM94-7-001, and RM95-9-001).

Byline: 
Lori A. Burkhart
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High Court Upholds Dichotomy in Tax Case

The U.S. Supreme Court in late February ruled that it is constitutional for Ohio to impose a 5-percent use tax on purchases of natural gas from an out-of-state natural gas marketer, when the same purchases would have been exempt from tax had the purchaser bought the gas from an in-state local distribution company.

Nicholas Bush, Natural Gas Supply Association president, expressed disappointment with the decision and called it a setback for development of a national, competitive natural gas marketplace.

Byline: 
Lori A. Burkhart
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Growing Nuclear Safety Problems Expand NRC's Watch List

The Nuclear Regulatory Commission has placed 14 nuclear reactors on its watch list(emthe highest number in about 10 years(emdue to safety problems. The plant were placed on the watch list by senior NRC managers at their semi-annual performance review of operating nuclear plants and fuel-cycle facilities.

The NRC also sent a letter to Commonwealth Edison asking the utility to explain why it should be allowed to operate six nuclear units at three of its nuclear plants that are on the list. Commonwealth is improving performance at each site.

Byline: 
Lori A. Burkhart
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Schaefer Reintroduces Restructuring Bill

House Energy and Power Subcommittee Chairman Rep. Dan Schaefer (R-Colo.), recently reintroduced his comprehensive electric restructuring bill, which largely mirrors legislation Schaefer had introduced in the 104th Congress.

The new bill, "Electric Consumers' Power to Choose Act of 1997" (H.R. 655), was presented Feb. 10 and differs from the original only in that it would not preempt the state restructurings already taking place.

Byline: 
Lori A. Burkhart
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FERC To Address Market Power, Must-Run Plants

California's three largest investor-owned utilities have petitioned the Federal Energy Regulatory Commission to convene a technical workshop on market-power issues raised by electric deregulation. Although a workshop had been held on Jan. 17, the utilities say the need more guidance (Docket No. ER96-1663-000).

The utilities are most concerned with the issue of "must-run" plants, and how to minimize the market power of generating units that must run to maintain reliability.

Byline: 
Lori A. Burkhart
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Congressmen Working To Eliminate Federal Payments to TVA By Restructuring

Responding to a call by Tennessee Valley Authority's Chairman Craven Crowell to eliminate the $106-million, annual appropriation provided to it, Representatives Bob Franks (R-NJ.) and Marty Meehan (D-Mass.) on Feb. 5 introduced a bill to end that federal payment.

The congressmen, who also co-chair of the Northeast-Midwest Congressional Coalition, distributed a study outlining the $1.2 billion in annual indirect taxpayer subsidies provided to TVA.

Byline: 
Lori A. Burkhart
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IPPs Lose Bid To Supply N.J. Utility

The New Jersey Board of Public Utilities has approved a proposal by Jersey Central Power and Light Co., an electric utility, to meet its short-to-medium-term power needs by purchasing power from utility-owned generating facilities located in New York, Ohio and Pennsylvania.

Under the agreement, the utility will purchase a total of 700 megawatts of power over an eight-year period from Pennsylvania Power and Light Co., Cleveland Electric Illuminating Co. and Niagara Mohawk Power Corp.

Byline: 
Phillip S. Cross
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States Expand Gas Transportation Programs

Regulators in Michigan and Florida have taken steps to expand programs for transportation of customer-owned gas.

In Michigan, the state public service commission will test the idea of expanding transportation service to residential and commercial users for two gas distribution utilities, plus allowing some aggregation to meet volume requirements. In Florida, the PSC will explore the idea of aggregating facilities owned by different customers.

Michigan. Tests in Michigan will involve Michigan Consolidated Gas Co. and Consumers Power Co.

Byline: 
Phillip S. Cross
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