Law & Lawyers

Frontlines

QUESTION: WHAT DO JOHN ANDERSON (ELCON),

Karl Stahlkopf (EPRI) and Matthew Holden (former commissioner at the FERC) have in common that may affect the course of electric restructuring?

Answer: Each belongs to Phil Sharp's task force on electric system reliability, and each embodies a different set of needs and aspirations, making it quite unlikely that we'll see agreement any time soon on what Congress or the Clinton Administration should do to reform the system.

Former Energy Secretary Hazel O'Leary announced the Task Force on Electric System Reliability last year.

People

NEW England Power, a subsidiary of New England Electric System, promoted Lawrence E. Bailey to president. Previously, Bailey served as vice president and director of generation operations.

Former Deputy Secretary of Energy, Charles B. Curtis, joined Hogan and Hartson as the director of its energy group. Susan Tomasky, former General Counsel of the Federal Energy Regulatory Commission, accepted a position with Hogan and Hartson's energy group.

Headlines

PITTSBURGH CHALLENGES MERGER; ALLEGES COLLUSION

The city of Pittsburgh has filed an antitrust lawsuit against Allegheny Power Systems Inc., and Duquesne Light Co., to stop the merger proposed by the two companies.

In its Sept. 29 court filing, Pittsburgh claimed the two utilities acted jointly to restrain trade. The city said the companies did this by agreeing to maintain higher rates for electric retail service at two industrial sites targeted for redevelopment zones pending their merger.

Perspective

EVERYONE'S GOT AN OPINION ABOUT MARKETING affiliates. In the natural gas industry, a fierce debate has emerged, as rules are proposed to govern the relationship between utility and affiliate.

Affiliate transactions are already among the most regulated activities in the gas industry. According to the 1995-96 Compilation of Utility Regulatory Policy produced by the National Association of Regulatory Utility Commissioners, every state, except Nebraska, has jurisdiction over affiliate transactions involving a private- or investor-owned gas utility.

Inside Washington

USE OF U.S. ECONOMY UPHELD FOR EQUITY CALCULATIONS

The Federal Energy Regulatory Commission, in seven rate cases involving interstate natural gas pipelines, has upheld a new policy on the appropriate long-term growth rate to be used in computing their return on equity. Five of the pipelines contested FERC's new policy, as announced in Opinion 396-b.

The Commission defended the rate-setting method, but decided to allow the pipelines a chance to prove why the rules should not apply to them. The contesting pipelines are: Trailblazer Pipeline Co. (Docket No.

Courts & Commissions

WITH DIRECT ACCESS SCHEDULED TO BEGIN ON Jan. 1, 1998, California regulators are moving quickly to set up their long-considered policies on electric restructuring. The restructuring actions touch nearly every aspect of electric regulation in the state from financing decisions and rate design to the sale of generating assets and monitoring new capital additions.

In addition, restructuring has affected ongoing regulatory activities such as the development of performance-based rate making plans and pricing and rate designs for large incumbent utilities.

Off Peak

WHEN THE CALIFORNIA PUBLIC UTILITIES COMMISSION approved a price-cap plan for Southern California Edison's distribution operations, it lamented the lack of a "distribution-only" study on productivity. So we prepared one.

Unlike electricity generation, electricity distribution will remain a regulated business. But the form of regulation likely will change to price caps, mirroring events in telecommunications regulation here and energy regulation abroad.

With price caps, rates are reviewed formally only at set intervals.

Reliability in Flux

NERC Assessments are Fine, but DOE Task Force Gets Last Word

Go figure. Plans to shut down nuclear generation in Ontario should not affect electricity supplies this winter within the United States, despite early rumors of chaos and rising natural gas prices. However, an unexpected slowdown in coal delivery by some U.S. railroads has "seriously reduced" on-site stockpiles of coal at some generating plants in three regional reliability councils - ERCOT, SERC and SPP - particularly those dependent on coal from the Powder River Basin in Wyoming.

Restructuring Hearings: Much Work Is Left Congress Lacks Consensus; Administration Offers No Input

AT HIS 21ST HEARING ON FEDERAL ELECTRIC Restructuring, Rep. Dan Schaefer (R-Colo.), chairman of the House Subcommittee on Energy and Power, said the two-day proceedings were the "beginning" of developing consensus on legislation.

Fellow subcommittee members spoke out on competitive issues at the Oct. 21 hearing, which highlighted their lack of consensus. The Clinton Administration was represented by the Department of Energy's Deputy Secretary, Elizabeth Moler, who said nothing about its restructuring plans.

Off Peak

WHO HAD THE BEST ANNUAL REPORT COVER in the utility industry in 1997? It's a tough choice. Several covers emerged from the masses of standard-issue, black-type-on-white (or off-white) backgrounds. Which leads us to Public Utilities Fortnightly's first annual report cover "award" for the best of in a variety of untraditional categories.


62

Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.