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Law & Lawyers

Gas Customers Pay the Price

Who will pay the costs incurred by regulated utility companies as they shift to competitive markets under plans engineered at the federal and state levels? This question is part of the debate over electric industry restructuring, but any payments lie in the future. For ratepayers in the gas market, however, the time has come. So far, state regulators have interpreted the law as prohibiting any sharing of gas market "transition" costs between shareholders and ratepayers.

Byline: 
Phillip S. Cross
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People

Charles B. Yulish was named v.p., corporate communications, for the U.S. Enrichment Corp. Yulish previously was executive v.p. and managing director of the E. Bruce Harrison Co. He began his career with the U.S. Atomic Energy Commission.

Dan Bart was promoted to the new position of v.p., standards and technology, to serve both the Electronic Industries Association and the Telecommunications Industry Association. Bart will retain his current responsibilities with TIA.

Allen Arvig, president of East Otter Tail Telephone Co.

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N.C. Requires Telecom Certification for Electric Utilities

The North Carolina Utilities Commission (NCUC) has ruled that electric utilities who plan to market excess capacity via their own fiber-optic telecommunications facilities must either obtain certification as an interexchange telecommunications carrier or form a separate subsidiary that obtains such certification. The NCUC noted that interexchange certification was sufficient because competitive local exchange service was not currently authorized in the state.

Byline: 
Phillip S. Cross
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Mailbag

In his article, "The Flawed Case for Stranded Cost Recovery" (Feb. 1, 1995), Charles Studness made many good points. Yet he omitted to mention one critical factor that influenced several utilities in the late 1970s to go ahead with new coal and nuclear capacity: the Carter Administration's 1978 Fuel Use Act, mandating that utilities cease burning natural gas by 1989.

For many companies operating in the south central United States, this requirement meant conversion or replacement of most existing capacity.

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Michigan Defers Approval of Antibypass Contract

The Michigan Public Service Commission (PSC) has rejected a request for expedited approval of a special contract between Consumers Power Co. and a natural gas transportation customer, the James River Corp. Consumers Power negotiated the contract when it learned that James River could bypass the local gas distribution system through a direct connection with a nearby pipeline operated by Panhandle Eastern Pipe Line Corp. The utility claimed that James River could rescind the contract and arrange for bypass service if approval was not obtained by February 3, 1995.

Byline: 
Phillip S. Cross
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Nuclear Waste Storage Effort Moves Forward

In response to the recent vote by the Mescalero Apache Tribe approving creation of a temporary nuclear waste storage site on tribal lands in New Mexico, the consortium of 34 utilities seeking a spent-fuel site have geared up for action.

According to Scott Northard, project manager for the consortium, Northern States Power Co. (NSP) (em which has spearheaded the effort (em has met with the other utilities and found enough interest to move forward with the process. May 3 is the target date for firm utility commitments to the project.

Byline: 
Lori A. Burkhart
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LEC Rejects Price-cap Plan

While reconsidering an earlier rate case order for New England Telephone & Telegraph Co., a telecommunications local exchange carrier (LEC), the Vermont Public Service Board (PSB) has approved an incentive regulation plan for the LEC and set out a series of recommendations to guide the development of a full price-cap regulation plan. Nevertheless, the PSB noted that a problem had developed in the case as a result of combining the revenue requirement aspect of the rate proceeding with consideration of the LEC's price-cap plan.

Byline: 
Phillip S. Cross
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Resources West Merger Promises Big Savings

Sierra Pacific Resources and The Washington Water Power Co. have filed a report at the Nevada Public Service Commission on their proposed merger to form Resources West Energy (RWE), estimating a combined savings of $449 million over the next 10 years. As a result, the utilities propose to freeze rates until at least 2000, except for one limited price increase in Nevada in 1997 and selected adjustments for energy supplies or extenuating circumstances.

About 42 percent of the savings will result from consolidation of duplicate functions and reductions in the workforce.

Byline: 
Lori A. Burkhart
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Perspective

How do American electric utilities differ from water companies, telephone companies, airlines, insurance firms, food processors, newspapers, steel mills, and other industries in the United States? "They produce electricity and the others don't," you answer. Maybe, but the others can produce electricity, too, if they want to.

Byline: 
Leonard S. Hyman
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Marketing & Competing

With the Clean Air Act Amendments of 1990 (CAAA) come many complex decisions for electric utilities. By now the majority of utilities have decided how they will comply with the clean air guidelines and acid rain program limits, at least for Phase I. But for those utilities that have selected coal switching as the preferred method of complying with the law, the task gets more complicated. Burn expensive low-sulfur coal and bank or sell allowances? Or burn just enough low-sulfur coal to meet the rules, and no more?

Byline: 
David A. Spainhoward and David E. Schultz
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