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Law & Lawyers

Competition Bill Dies in Connecticut

Connecticut's proposed electric restructuring legislation, H.B. 6774, died after being dropped unexpectedly by the state Senate. Backers of restructuring legislation plan to reintroduce the bill next year when the new session begins in February 1998.

The bill would have opened markets to competition Jan. 1, 2000, coupled with a 10-percent rate cut. Under the bill, utilities would have recovered up to 65 percent of stranded costs for above-market nuclear investments and 100 percent for regulatory assets. The bill would have allowed securitization of those costs.

Byline: 
Lori A. Burkhart
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PECO Gets $1.1 Billion

At a proceeding marred by hecklers and the arrest of five protesters, the Pennsylvania Public Utility Commission finalized a preliminary decision awarding PECO Energy Co. $1.1 billion of its requested $3.8 billion in stranded cost recovery (Docket R-00973877).

On May 8, by a 4-1 vote, the PUC issued a nonbinding order to allow PECO to refinance the $1.1 billion in stranded costs at lower interest rates through issuance of asset securitization bonds to be paid over 10 years.

Byline: 
Lori A. Burkhart
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N.Y. Proposes ESCO Rules, Tables Enron Plan

Finding it "too early" to consider proposals by Enron and Wheeled Electric Power to assign the state's electric utility customers to retail competitive energy service companies, the New York Public Service Commission nevertheless has mapped out a proposal to introduce competition in retail energy markets through a state-established retail provider of last resort.

The commission also would like to make information readily available to allow consumers to make informed choices. The proposed policy would permit adequate oversight of the market to ensure its fair operation (Opinion No.

Byline: 
Lori A. Burkhart
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Joules

ABB Systems Control sold an OASIS gateway system to Cinergy Corp. The system is configured to communicate with the ECAR OASIS node, handling TTC and ATC calculations, transmission service requests and other required transmission path information. Cinergy also bought an ABB enhanced interchange scheduling system, ISplus(.

Northern State Power Co.'s Monticello Nuclear Generating Plant in Minneapolis, Minn. was expected to start up in July or August after a May 9 shutdown to correct a design problem.

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Maine, Montana Consumers to Get Choice

The governors of Maine and Montana (em two states with very different electricity markets (em have signed three bills into law to allow competition in the electric and natural gas industries in their respective jurisdictions.

Maine. Gov. Angus King signed an electric restructuring bill that mandates competition in the state starting March 1, 2000.

The Maine law, An Act to Restructure the State's Electric Industry, L.D. 1804, was signed on May 29. It allows for recovery of stranded costs as determined by the Maine Public Utilities Commission.

Byline: 
Lori A. Burkhart
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Whither FERC?

With electric bills in Congress, and Moler bound for DOE, the Commission needs new vision.

Speaking in May at an informal press luncheon at the Washington International Energy Group in Washington, D.C., FERC Commissioner William L. Massey described the Federal Energy Regulatory Commission's role in an open-access electric industry as "nourishing" competition.

Byline: 
Bruce W. Radford, and Lori A. Burkhart
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Illinois Oks Three-Way Interstate Merger

The Illinois Commerce Commission has approved the three-way merger of WPL Holdings, IES Industries, and Interstate Power Co. to form Interstate Energy Corp.

The commission agreed that the public will benefit from the cost savings produced by the merger. The companies predict savings of about $750 million for the first 10 years after the merger. The Minnesota Public Utilities Commission granted merger approval on March 24. The Federal Energy Regulatory Commission concluded hearings in May and had yet to rule at press time.

Byline: 
Lori A. Burkhart
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Foreign Investment: Moody's Doubts Bondholder Benefits

A new report from Moody's Investors Service finds that foreign investments often offer U.S. electric utility shareholders the prospect of higher returns, but hold little immediate upside benefits for bondholders.

The report, Some Investments Riskier Than Others in Wave of Overseas Expansion by U.S. Electric Utilities, finds that for bondholders, such investments detract from alternative uses of free cash flow. The bondholder could apply the invested money to debt service or repayment, or growing retained earnings to offset potential write-offs of stranded investment.

Byline: 
Lori A. Burkhart
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Peggy Welsh Winds Up: NARUC's New Exec Wants PUCs to Network with Congress Joseph F. Schuler Jr.

"When they come to town ... we'll ... accompany them to Capitol Hill ... to make their trip to Washington a 'two-fer,' if you will."

Paul Rodgers knocked NARUC on its ear last July when he announced his resignation as executive of that century-old association.

Rodgers, also general counsel, had served the National Association of Regulatory Utility Commissioners for more than 30 years.

His unexpected move came in the midst of strategic planning at NARUC.

Byline: 
Joseph F. Schuler, Jr.
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KU Energy, LG&E Would Merge

KU Energy and LG&E Energy have announced a merger agreement that could save the companies more than $760 million over 10 years and result in a rate cut of almost 2 percent for each of the next five years.

KU Energy, the parent company of Kentucky Utilities Co., and LG&E Energy, the parent of Louisville Gas & Electric Co., on May 21 announced the agreement to merge into a new holding company called LG&E Energy. The transaction is valued at more than $3 billion, with the combined companies holding assets of more than $4.7 billion.

Byline: 
Lori A. Burkhart
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