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Law & Lawyers

Murkowski to IRS: Hands Off Tax-Exempt Bonds

Senate Energy and Natural Resources Committee Chair Frank H. Murkowski (R-Alaska) has written a letter to Treasury Secretary Robert E. Rubin regarding regulation changes the Internal Revenue Service is considering, which would allow publicly owned utilities to expand use of tax-exempt bonds to compete against privately owned utilities.

Murkowski asked the IRS not to issue new regulations giving publicly owned utilities a "special competitive advantage" by allowing the companies to issue tax-exempt bonds.

Byline: 
Lori A. Burkhart
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People

The California Public Utilities Commission elected members to two boards overseeing energy efficiency and low-income programs. The board for energy efficiency programs members are: Acting Chair Sara Steck Myers, CEERT; Dave Gamson, CPUC commissioner advisor; Michael Messenger, California Energy Commission; Peter Miller, Natural Resources Defense Council; Mark Thayer, San Diego State University; Ortensia Lopez, Greenlining Institute; Charles Goldman, Lawrence Berkeley Laboratory; Michael Shame, UCAN; and Don Schultz, CPUC Office of Ratepayer Advocates.

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Moody's Looks at Plant Divestiture

Moody's Investors Service has released a report that finds the most significant long-term implication of Order 888 for investors is for potential divestiture of transmission assets by investor-owned utilities.

The Moody's study, FERC Order 888 and Wholesale Competition: Catalyst for a New Market Model, also finds that divestiture by a vertically integrated utility may leave bondholders secured by a lien on relatively risky generating assets of often questionable market value, as opposed to the presently more diverse and balanced asset portfolio.

Byline: 
Lori A. Burkhart
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Mailbag

Authors lost their case. The bright line is preserved.

Unfortunately, PUBLIC UTILITIES FORTNIGHTLY did not caution its readers that a recent article ("Gas Pipelines and the Hinshaw Amendment: Conflicts Loom as the 'Bright Line' Fades Between Federal and State Jurisdiction," April 1, 1997, p. 36) is actually a thinly disguised brief for claims that a series of tribunals has rejected, including the U.S. Supreme Court. A warning from the editors would have saved valuable time for readers searching for more substantive coverage of the utility industry.

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In Brief...

Sound bites from state and federal regulators.

IntraLATA Toll Calling. North Carolina says newly certified competitive local exchange telephone carriers must apply for separate authority to provide intraLATA toll services, even though incumbent local carriers need not do so. Docket No. P-100, SUB 133, March 31, 1997 (N.C.U.C.).

Dialing Parity. Oregon PUC adopts policies on telephone dialing parity to allow all telephone users who choose alternate carriers to make calls without dialing extra numbers. Order No. 97-107, March 18, 1997 (Ore.P.U.C.).

Payphone Subsidies.

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Oklahoma Plans to Introduce Competition by 2002

Oklahoma Gov. Frank Keating has signed into law the "Electric Restructuring Act of 1997," S.B. 500, which allows customers choice of electric suppliers by July 1, 2002.

The legislation was written by state Sen. Kevin Easley (D), who originally had called for competition by 2000. The new law calls for the Oklahoma

Corporation Commission to resolve issues surrounding stranded costs.

According to Keating, "[Deregulation] should help strengthen our economic development position when we're in competition with other states for jobs."

Byline: 
Lori A. Burkhart
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In Brief...

Sound bites from state and federal regulators.

Gas Curtailment. New York PSC approves updated curtailment and interruption tariffs for many of the state's natural gas local distribution companies. It had asked the LDCs to develop new rules to reflect growing competition and ensure gas deliveries for core customers during a supply crunch. Case 93-G-0932, March 24, 1997 (N.Y.P.S.C.).

T & D Classification. New York PSC opens proceeding to distinguish between electric transmission and distribution facilities.

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Sacremento to Allow Customer Choice

The board of directors of the Sacramento Municipal Utility District has approved the introduction of competition in its service territory. SMUD is opening up competition for 100 megawatts of power (em about 5 percent of its total load (em in its new "Direct Access Phase-In Program."

Starting in June, customers may contract with a new energy supplier. Customers could receive power from the new provider in July.

Byline: 
Lori A. Burkhart
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States Set Rates for LEC Interconnection Services

Signaling victory over one of the more complex issues in the move to competition in the local telephone market, regulators in Connecticut and New York have adopted rate plans for unbundled interconnection services offered by incumbent local exchange carriers.

Both states also recently approved the wholesale discount rate that the LECs must apply to existing services when offering them for resale by competitive companies. See Re AT&T Communications of New York, Inc., 173 PUR4th 274 (N.Y.P.S.C. 1996); Re So. New England Tel. Co., Docket No. 95-06-17, March 25, 1997 (Conn.D.P.U.C.).

Byline: 
Phillip S. Cross
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Study Predicts Changes in Northeast

The Reed Consulting Group has released a study, which predicts that in 10 years, no more than six major companies will dominate the Northeast power market in each of the generation, wires and energy services industries.

The study also said the transition to competition primarily would affect generation and energy marketing.

On the Brink of Competition: RCG's Guide to the Northeast Power Market finds that New England and New York are setting the pace for the nation on power and fuel markets convergence.

Byline: 
Lori A. Burkhart
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