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Law & Lawyers

California to Reconsider PBOP Rulings

The California Public Utilities Commission (CPUC) has reaffirmed an earlier ruling permitting telecommunications utilities subject to price-cap regulation to use accrual accounting for post-retirement benefits other than pensions (PBOPs) under SFAS 106. It also warned that it may change its existing policy, which allows recovery of the costs of the accounting change as an exogenous cost under the price-cap form of regulation. The CPUC explained that "strong arguments can be made" that PBOP costs are within the utilities' control and simply normal costs of doing business.

Byline: 
By Phillip S. Cross
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PSE&G Customers Can Shop Around for Gas

The New Jersey Board of Public Utilities (BPU) has approved a plan that will allow Public Service Electric and Gas Co. (PSE&G) to offer new transportation services to its commercial and industrial (C/I) natural gas customers. As a result of the BPU action, PSE&G will begin offering third-party gas transportation and other services to C/I customers regardless of size, amount of gas used, or alternate fuel capabilities. These customers may purchase gas directly from producers and marketers and arrange for PSE&G to transport and deliver the gas.

Byline: 
W. Lynn Garner
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Perspective

I am under siege. To be more precise, my company and American corporations in general are under siege. In popular media today, corporations are consistently treated as suspect at best (em and demonized at worst. If you switch off your critical faculties when you watch television or go to the movies, you're probably convinced that corporate America is out to destroy this country. In 1964, while campaigning for Barry Goldwater, Ronald Reagan framed the issue perfectly.

Byline: 
Leah Manning Stetzner
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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.

Byline: 
By Phillip S. Cross
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Williams Moves into the Northeast

On December 12, the Williams Companies Inc. and Transco Energy Co. announced a cash tender offer by Williams to acquire up to 24.6 million shares, or 60 percent of Transco stock, for $17.50 per share. Combined with assumed debt and preferred shares, Williams' acquisition cost will total about $3 billion. Following completion of the tender offer, a newly formed subsidiary of Williams will be merged into Transco, with Transco continuing as a wholly-owned subsidiary of Williams. The boards of directors of both companies have unanimously approved the transaction.
Byline: 
Lori A. Burkhart
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Maine PUC Asserts Right to Review Utility EWG Investments

The Maine Public Utilities Commission (PUC) has rejected a settlement agreement that would have allowed Central Maine Power Co. to invest $30 million over the next three years in unspecified, unregulated power projects. The utility originally applied to create exempt wholesale generation (EWG) entities and related subsidiaries.
Byline: 
Phillip S. Cross
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Cajun Files for Chapter 11

Succumbing to the pressure of its debts, the Tennessee Valley Authority (TVA) has halted construction on three nuclear power plants, the only remaining incomplete plants in the nation. According to chairman Craven Crowell, TVA can no longer foot the bill alone. So far, TVA has invested about $4.6 billion in two unfinished units at the Bellefonte Nuclear Plant in Alabama, and $1.7 billion in Watts Bar 2 in Tennessee. TVA estimates it will cost as much as $8.8 billion to finish all three units. (The Bellefonte units are 88 percent and 57 percent complete, respectively.

Byline: 
Lori A. Burkhart
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DSM Bidding Dispute Left to Utility

The Washington Utilities and Transportation Commission (UTC) has refused to mediate a dispute between Washington Water Power Co. and a bidder in the utility's 1991-92 resource procurement auction. The bidder, SESCO Inc., complained after the utility found its demand-side management (DSM) program proposal not cost-effective. The UTC said the decision to close the bidding and not pursue a contract with SESCO was a matter for review in the utility's next general rate case.

Byline: 
Phillip S. Cross
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California Revises "Blue Book" Schedule

The California Public Utilities Commission (CPUC) has issued an interim decision on restructuring the California electric industry (R.94-04-031). The decision calls for the CPUC to propose a policy decision for comment on March 22, 1995, and to adopt a policy decision 60 days later. That policy decision would then become effective in September 1995. To that end, the interim decision establishes a working group to examine how existing social, economic, and environmental programs would hold up under the range of proposed restructuring models.
Byline: 
Lori A. Burkhart and W. Lynn Garner
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Arkansas Encourages Wholesale Electric Competition

Citing its desire to promote a fully competitive wholesale market for electric power, the Arkansas Public Service Commission (PSC) has waived restrictions on serving wholesale and retail loads in the state for Entergy Power Inc. Entergy had proposed to sell Oklahoma Gas & Electric Co. power wheeled from two generating facilities by Arkansas Power & Light Co. (AP&L), an Entergy affiliate.

Byline: 
Phillip S. Cross
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