Law & Lawyers

CPUC Delays Electric Rate Decision

The California Public Utilities Commission (CPUC) has decided to adopt a "wait and see" approach in general rate proceedings for utilities affected by its generic industry restructuring case. Southern California Edison Co. asked the CPUC to postpone ruling on marginal cost, rate design, and cost-allocation issues in its 1995 general rate case until it issues a policy order in the restructuring proceeding.

DC Modifies Preconstruction Review

The District of Columbia Public Service Commission (PSC) has amended regulations governing the scope of its authority over facilities constructed outside of the municipality. Late last year, the District of Columbia Public Service Commission (PSC) issued comprehensive regulations governing the preconstruction review of utility power plants, transmission lines, cogeneration facilities, and independent power production facilities.

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.

Illinois Rejects Monetization of Externatilies

The Illinois Commerce Commission (ICC) has reaffirmed earlier rulings that the state's least-cost planning laws must require consideration of the adverse external environmental costs of providing utility service. However, it rejected proposed new rules that would require monetization of the externalities based on projected costs of complying with future environmental regulations.

Tax Corner

Developers of independent power projects in foreign countries often try to set up the local-owner company to qualify as a partnership for U.S. tax purposes, even if the company is a corporation in the eyes of its government. This strategy enables the developer to defer U.S. taxes on his earnings from the project for as long as he is willing to keep the earnings abroad.

Under new IRS guidelines (Revenue Procedure 95-10) issued January 17, 1995, a foreign company qualifying as a partnership must have at least two shareholders.

Ohio Proposes Emission Allowance Regs

The Ohio Public Utilities Commission (PUC) has proposed regulations to allow electric utilities to use fuel-cost clauses to recover gains or losses from trading Clean Air Act emission allowances. The PUC emphasized that utilities should use the allowance market to maximize trading while making the use of coal produced in the state part of a least-cost power-supply strategy. Re Amendment of Chapter 4901:1-11 of the Ohio Administrative Code, Case No. 94-1792-EL-ORD, Nov. 23, 1994 (Ohio P.U.C.).

In a separate case, the PUC ruled that Dayton Power & Light Co.

West Virginia Examines LEC Competition

The West Virginia Public Service Commission (PSC) is investigating whether to adopt rules it could apply "in the event of competition" in the telecommunications local exchange market. It said it would not promulgate its own proposed rules at this time, and invited submission of suggested rules by February 21, 1995. Re Competition for Local Exchange Services, Case No. 94-1102-T-GI, Nov.

Ohio Pushes Local Service Competition

The Ohio Public Utilities Commission (PUC) has reaffirmed its desire to open local exchange telephone markets to competition, urging "all deliberate speed." The PUC voiced its telephone competition policy in approving a new, six-year, price-cap regulation plan for Ameritech Ohio, a local exchange carrier (LEC). The plan, which reduces the LEC's revenue by $92.3 million, cuts intrastate toll charges by $7.9 million, residential rates by $55 million, and access charges for long-distance carriers by $8 million.

Zoning Change Raises EMF Concerns

The Rhode Island Supreme Court has ruled that the state commission did not err when it refused to reverse a decision by the Town of Portsmouth to rezone certain property from industrial to residential. Newport Electric Corp. had protested that the change could make it liable to EMF damage claims because of overhead power lines in the area.

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.