Law & Lawyers

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.

Public Service Co. of Colorado (PSCC) and IBM have announced a strategic alliance. IBM's subsidiary, Integrated Systems Solutions Corp. (ISSC), and a new PSCC subsidiary, e prime, will develop and deliver new information technology applications to improve utility customer service. E prime's first project will be to help IBM develop a natural gas procurement strategy to reduce energy costs and improve the quality and reliability of its energy services. ISSC will manage most of PSCC's information technology systems and network infrastructure.

Moody's Investors Service has placed the Baa2 long-term credit rating of Houston Industries Inc. (HII), parent company of Houston Lighting & Power (HL&P), under review for possible upgrade. The main catalyst is HII's January agreement to sell its cable television assets valued at $2.24 billion in exchange for cash and securities to Time Warner Inc. Another factor is HL&P recent settlement with the city of Houston in its rate proceeding. Although it includes a $367-million annual rate reduction, Moody's says the settlement will have "minimal impact" on the utility's credit rating.

The Federal Energy Regulatory Commission (FERC) has refused to reconsider its December 14, 1994, policy statement on hydroelectric plant decommissioning. That policy upholds the FERC's authority to deny new project licenses when existing licenses expire and to order owners to remove a dam during the relicensing process (Docket Nos. RM93-23-000, RM93-23-001). Commissioner James J.