Law & Lawyers

FERC Upheld on Municipal Preference for Hydro Licensing

The U.S. Court of Appeals for the District of Columbia Circuit has upheld a Federal Energy Regulatory Commission (FERC) finding that the municipal preference in hydropower project relicensing cases did not apply to "orphaned" facilities. Facilities are considered orphaned if the current license holder files a notice of intent to apply for a relicense, but then fails to file a timely application.

New York Reviews QF Backup Service

The New York Public Service Commission (PSC) has turned down a request to create a special rate for backup service to qualifying facilities (QFs) with dispatchable contracts. The PSC made the ruling while reviewing a request by Niagara Mohawk Power Corp. for permission to increase its rates for backup services provided to customers with onsite generation, primarily QFs. The utility had withdrawn the proposed rates, but only after the parties to the case claimed that the rate proposal was designed to kill competition, especially from smaller QF projects.

Wisconisn Orders LDCs to Restructure Rates

Gas local distribution companies (LDCs) in Wisconsin must provide unbundled balancing services for transportation customers at cost-based rates under new rules adopted by state regulators. The new rules came out of a Wisconsin Public Service Commission (PSC) investigation of LDC tariff changes required as a result of pipeline restructuring at the federal level.

The PSC ruled that balancing is required where an LDC is served by a pipeline with balancing provisions that contain penalties that default to the LDC, and hence to system sales customers.

Florida Approves To Usher Test for DSM

In setting utility conservation goals, the Florida Public Service Commission (PSC) has decided to permit the state's electric utilities to eliminate demand-side management (DSM) programs that increase rates for nonparticipating customers.

Oregon Court Upholds LEC Collocation Rules

The Oregon Court of Appeals has upheld rules implemented by state regulators requiring local exchange telephone carriers (LECs) to offer physical collocation to enhanced service providers. The court emphasized that the complaint brought by GTE Northwest Inc, an LEC, was limited to a "facial challenge" of the open network architecture (ONA) rules under state public utility law.

Moving Off the Mainframe

No matter how you cut it, the Customer Information System (CIS) represents a utility's largest computer asset. It eats up the most disk space. It contains the most programs and lines of code. It handles the largest volume of business, whether measured in transactions or dollars.

Billing lies at the core of the CIS. It's the most complex area. But once bills go out to customers, the CIS must manage accounts receivable and the collection process, not to mention financial control and reporting.

Electric Utility Penalized for Power-Supply Strategy

Citing an excessive commitment to increasingly expensive purchased-power contracts, the Vermont Public Service Board (PSB) has reduced allowed rate of return on equity by 75 basis points. In setting rates for Central Vermont Public Service Corp., the PSB explained that ratepayers should not bear all of the costs associated with 1) excessive power commitments; 2) a failure to fully explore return sales opportunities; and 3) inefficient energy-efficiency programs.

Michigan Orders Release of Info on Electric Competition

The Michigan Public Service Commission (PSC) will require Energy Michigan (em a nonprofit corporation whose members promote expanded use of cogeneration, IPPs, and waste-to-energy projects (em to provide Consumers Power Co. with information concerning the extent of existing and proposed self-generation projects that pose a competitive threat. The PSC directed Energy Michigan to answer interrogatories served by Consumers after Energy Michigan intervened in a proceeding concerning a new "competitive tariff" proposed by the utility.

Vermont Approves Telco Price-cap Plan

The Vermont Public Service Board (PSB) has approved an alternative price regulation plan (PRP) for New England Telephone Co. (NET), while reducing its rates by 9.56 percent (about $15 million) per year, and ordering a $11.5-million rate refund. (Under state law, NET is not required to accept the price regulation plan.

Indiana Authorizes Order 636 Transition Cost Recovery

The Indiana Utility Regulatory Commission (URC) has authorized Northern Indiana Public Service Co. to recover its Federal Energy Regulatory Commission Order 636 pipeline transition charges under a rate design proposal that divides the charges between sales and transportation customers. Under the approved recovery plan, the gas local distribution company (LDC) will pass to all ratepayers on a volumetric basis those transition charges related to gas supply realignment and stranded investment.