Law & Lawyers

Charting Regulation in '95: Put on Your Lifejackets!

State and federal regulators and the industries we regulate have donned life jackets. It's as if we are boating down the unexplored Grand Canyon with John Wesley Powell1 in 1869. We share a vague vision of what lies at the mouth of the canyon, but the rapids are treacherous and uncharted.

On the river, boatmen and women often scout the tough rapids from the shore. Back on the river, they carefully set themselves up at the proper position and angle, then apply deft, sometimes powerful, strokes at crucial moments.

FERC Rejects NEPOOL Tariffs

The Federal Energy Regulatory Commission (FERC) has rejected a proposed amendment to the NEPOOL agreement that would have 1) facilitated negotiation of energy-only transactions by and among pool members, and 2) eliminated an otherwise applicable rate discount for transmitting energy involved in certain of those sales (Docket No. ER95-1466-000).A key aspect of NEPOOL operations is sharing of reserves. Each member is assigned a capacity responsibility equal to its load plus a share of the pool's combined reserve requirement.

PUCs at 2000 - Question OneState Commissioners

Question: Will your commission still be around in the year 2000? If so, what will it look like? Are you restructuring your commission with the same fervor you devote to electricity, gas, and telecommunications?Response by Nancy McCaffree, Chair, Montana Public Service Commission:

As a regulator I have had the opportunity to listen to economists, energy planners, and other professional soothsayers. I have come to the conclusion that the only certainty pertaining to future forecasts is that they will be wrong 100 percent of the time.

Open-access Filings Climbing

The Federal Energy Regulatory Commission (FERC) has accepted seven more open-access electric transmission tariffs, bringing the total to 34. Another six are pending. The new tariffs were submitted by Jersey Central Power & Light Co.,

Mid-American Energy Co., Illinois Power Co., Wisconsin Power & Light Co., Western Resources, Inc., IES Utilities, and Commonwealth Electric Co.

"We consider this a success story," said FERC chair Elizabeth A. Moler. "While we still have a long way to go, this is real progress.

PUCs at 2000 - Question TwoState Commissioners

Question: What is your relationship with the state legislature? Do lawmakers in your state show interest in utility regulation? Should PUCs work more closely with state legislatures?Response by Boyce Griffith, Chairman, West Virginia Public Service Commission:

The West Virginia PSC's relationship with the legislature is good. The West Virginia legislature has been active in utility regulation. I believe West Virginia utilities already work closely with the legislature and will continue to do so.

FERC Eases Gas Reporting Burden

The Federal Energy Regulatory Commission (FERC) has issued two final rules that seek to reduce the filing burden on the natural gas industry. One simplifies the Uniform System of Accounts and the FERC's reporting requirements (Docket No. RM95-4-000). The other simplifies the filing requirements for making rate and tariff changes under Part 154 of the regulations (Docket No. RM95-3-000).

The rules recognize that most interstate pipelines now serve as transporters rather than as merchants.

Frontlines

John Anderson is jumping out of his shoes. And his socks, too. His group, the Electricity Consumers Resource Council (ELCON, where Anderson serves as executive director) may at last get its way.During a few weeks in October, a good half-dozen energy industry players (em including utilities and regulators (em came out in favor of customer choice for electric and gas service.

FERC Upholds N.J. QF Procedures

The Federal Energy Regulatory Commission (FERC) has denied a Jersey Central Power & Light Co. (JCPL) request that it invalidate the procedures used by the New Jersey Board of Public Utilities (BPU) to implement the Public Utility Regulatory Policies Act of 1978 (PURPA) (Docket No. EL95-36-000).

JCPL claimed that state procedures required it to enter into a purchase agreement with a qualifying facility, Freehold Cogeneration Associates, L.P., for 100 megawatts of power at rates that exceeded JCPL's avoided cost at the time of contract execution and approval.

People

Entergy Corp. has hired John A. Brayman, former president of Ameritech Corp.'s telephone industry services subsidiary in Chicago. Brayman will continue company expansion into nonregulated, domestic energy, and utility-related business as executive v.p. of Entergy Enterprises, Inc. and president of an as-yet unnamed group.J. William Holden was named Southern Electric International's v.p. for operations and development in Latin America and the Caribbean.

GE Supply, a General Electric division, promoted William C. Betke to g.m.

Financial News

At Addison Mizner's pink fantasy on a Spanish theme, the Boca Raton Resort, the Edison Electric Institute (EEI) waited for Godot. Yes, that was the theme of EEI's 30th financial conference, and its first plunge into literature. You may remember the play, in which two hobos talk endlessly while waiting for the mysterious Godot, who has not yet arrived by the final curtain. In the same way, electric utilities and those who invest in them have been awaiting the advent of restructuring, the California remake of the industry, retail wheeling somewhere, and the wipeout of stranded assets.