Law & Lawyers

Fitch Investors Service has assigned competitive rankings to 60 of the nation's largest public power and investor-owned electric utilities (IOUs). The top three IOU slots in the Fitch Competitive Indicator (FCI) go to Duke Power Co., Potomac Edison Co., and Northern States Power Co.

Tennessee Valley Authority (TVA) chairman Craven Crowell wants TVA to be able to compete with other utilities for customers outside its service territory. Congress established the territorial boundaries in 1959, limiting TVA and distributors of TVA power to the areas they served as of July 1 of that year. Speaking at the American Public Power Association in Washington, DC, on February 1, Crowell said he has commissioned a study by Palmer Bellevue to examine how to remove the "fence" that prevents TVA from expanding.

Two New York Public Service Commission administrative law judges (ALJs) have recommended that Niagara Mohawk Power Corp. (NMP) be allowed to increase its 1995 electric and gas rates by $57 million (1.9 percent) and $10.7 million (1.7 percent), respectively (Docket Nos. 94-E-0098, 94-E-0099, and 94-G-0100). The proposal contrasts sharply with the PSC's 1994 recommendation to cut NMP rates by 7.1 percent over five years. NMP had asked for a 1.8-percent hike in electric rates, and a 4.2-percent increase in gas rates.

Consumers Power Co. has asked the Michigan Public Service Commission to approve a Special Competitive Service (SCS) rate to help retain industrial customers who threaten to leave the system. The SCS rate would be offered to customers who can obtain their power elsewhere and to new customers considering locating or expanding facilities in Michigan. "[A]pproval of this rate would grant Consumers Power the ability to negotiate special contracts with certain `at risk' large industrial customers which have competitive energy supply options," says Michael G.