The Ohio Public Utilities Commission has refused to modify an earlier ruling that required telecommunications local-exchange carriers to permit their special-contract customers to reexamine their negotiated rates to look for cost-saving alternatives once competition is established in the local market.
The Ohio Telecommunications Industry Association had asked the commission to reconsider the so-called "fresh look" provisions, issued Nov.
Zond Development Corp. will supply MidAmerican Energy Co. with 45 MW of wind-generated power per month for 20 years. Terms of the agreement were not released, but Zond will begin supplying energy within three years of regulatory approval. The contract helps fulfill the utility's alternate energy requirements under Iowa law. Zond will generate the power from about 150 wind turbines planned for Buena Vista County. The windmills will interconnect with the MidAmerican transmission system at a nearby substation.
Motivated by numerous consumer complaints regarding substantial, unexpected increases in bills for natural gas service, the New Mexico Public Utility Commission has fined Public Service Company of New Mexico, finding that the utility knowingly understated gas cost data in prior adjustment clause filings to avoid commission review of an ongoing gas price crisis.
The commission suspended the $2.2-million fine, however, in light of its decision to prevent PSNM from collecting more than $1.5 million in purchased gas revenues associated with the understated gas cost projection.
Virginia Power Co. has asked the Virginia Corporation Commission to freeze its base electric rates through 2002, which would set the average residential electric bill in 2002 at virtually the same as it was in 1992.
The base rate freeze is part of an alternative regulation plan submitted to the commission on March 24, which is designed to ensure stability for electric customers and shareholders during the move toward more competitive markets.
Central Maine Power Co. has agreed to allow other providers of wholesale electric power to bid for the right to supply energy to the utility for resale to utility customers who enjoy special discounted rate contracts.
It would carry out its agreement if and when the state of Maine should decide to open its retail electric market to competition.
The utility's promise to allow competitive suppliers to bid the special-rate contract load paved the way for the Maine Public Service Commission to approve new multi-year contracts offered by the utility to two large customers.
With the implementation of the Energy Policy Act and the FERC's Orders 888 and 889, competition has been introduced into wholesale power markets. It is limited in scope, however, as utilities are still able to recover their fixed generation costs and embedded cost of capital from their captive retail markets. This limited competition impedes progress towards the development of a more efficient generation system in the U.S. and provides only modest benefits to retail customers.
Currently, generators compete only in wholesale markets and not in retail power markets.
New England Electric System has received preliminary proposals from 25 potential buyers for the purchase of its generation business.
The proposals, which were due March 25, are from utility affiliates, independent power producers, and energy companies.
New England Electric System noted that buyers would gain an immediate presence in the regional energy market, which opens to competition in mid-1997 for some Rhode Island customers, and in January 1998 for Massachusetts and New Hampshire customers.
The Minnesota Public Utilities Commission has rejected a proposal by U S WEST Communications Inc. to discontinue offering its Centrex family of business services to new customers.
According to the commission, the local-exchange carrier's plan would make it much harder for new resellers to enter the local telephone market and seriously hamper the development of competition in the state.
U S WEST had claimed that misapplication of "Centron/Centrex" offerings by smaller users had resulted in significant "tariff arbitrage" of basic business service.
Some states have become well-known for their regulatory or legislative initiatives on electric restructuring and customer choice. Among those drawing the greatest attention are California, New Hampshire, Rhode Island, Massachusetts, New York, and Texas.
At press time, reports were filtering in of legislation about to be introduced in Montana and North Carolina (em states that might be considered unlikely subjects for competitive initiatives.
Southwestern Electric Cooperative Inc. has notified Soyland Power Inc. it will terminate its electric supply contract and buy its full requirements from Cinergy Corp.
The cooperative said it can buy the wholesale power from Cinergy at a lower price. It is expected to start receiving electricity in April under a five-year contract. The agreement includes other services Cinergy may provide to Southwestern Electric Cooperative, such as economic assistance and new-business development opportunities.