Law & Lawyers

Joules

jü( )l, n: A unit of energy measurement equal to a watt-second.

Tenneco Energy and Chinese Petroleum Corp.'s new alliance plans to work on natural gas transmission facilities, power plants, and other energy ventures in Taiwan and North America. Their first project is a

600-Mw natural gas-fired power plant near Taipei, expected to go on line in June 1998. CPC is one of Asia's largest state-owned energy companies; Tenneco Energy, of Houston, transports or markets about 16 percent of the natural gas used in the United States.

W.Va. Approves LDC Price-cap Plan

The West Virginia Public Service Commission (PSC) has approved a new incentive regulation plan for Mountaineer Gas Co., a natural gas local distribution company (LDC). The plan creates price caps that are slightly below current rates and assigns the LDC the risks and benefits of any efficiency gains or losses during the three-year plan period. The settlement also calls for a $3-million rate reduction, and forbids the utility to file for a rate increase during the three-year period. Mountaineer fully assumes the risks and benefits of the fluctuating gas market.

Virginia Sends Message to City

The Virginia State Corporation Commission (SCC) has exercised jurisdiction and declared that the City of Falls Church must obtain its approval before attempting to condemn electric facilities owned by Virginia Power Co. (Vepco). Vepco had filed a petition with the SCC, claiming that Falls Church intended to oust the utility from serving the area. Falls Church failed to contest the petition or respond to allegations that the SCC did not have jurisdiction. The utility's petition alleged that the city plans to condemn Vepco meters and other facilities.

MCI to Provide Local Telephone Service

The Indiana Utility Regulatory Commission (URC) has authorized MCI Telecommunications Corp., an interexchange carrier, to provide certain local business telephone services in the Indianapolis area on a two-year trial basis. These services (em which MCI will resell under an agreement with Hancock Rural Telephone Corp., a local exchange carrier (LEC) (em were previously offered exclusively by either Hancock or Ameritech Indiana, another LEC serving the Indianapolis area. The trial program is the result of a settlement agreement between MCI and Hancock.

San Francisco Examines Competitive Options

The City of San Francisco has retained Strategic Energy Ltd. (SEL) to study whether the municipality should expand its own utility. "We will evaluate whether it makes sense for the citizens of San Francisco to break from Pacific Gas & Electric and expand their own electric utility," said SEL president Richard Zomnir.

N.J. Requires LDC to Offer Capacity Release

The New Jersey Board of Public Utilities (BPU) has approved a two-year capacity-release program for Public Service Electric and Gas Co. (PSE&G), a natural gas local distribution company (LDC), as part of an ongoing effort to unbundle gas services. Other LDCs in the state have already incorporated capacity-release programs, but PSE&G argued that it was without surplus year-round pipeline capacity. The LDC said gas marketers should obtain their own capacity at lower rates through either long-term contracts with the pipelines or through capacity release from other parties.

Perspective

If you attended any energy conference in the past year, even one on natural gas, I am confident that at least one panel was devoted to the restructuring of the electric industry.

Nuclear Fisticuffs: Senate Panel and DOE Go Around on Waste Storage

The Senate subcommittee funding the Department of Energy (DOE) may use a carrot-and-stick approach this year to push DOE into finding a quicker solution to the long- and short-term nuclear waste crisis. The debate to get the waste stored safely underground promises an appropriations war that could rival the federal budget skirmish.

Current law authorizes only a permanent repository, not interim storage. Utilities, however, claim they're running out of room to cache their waste.

A.G.A. Supports PUHCA Repeal

The board of directors of the American Gas Association (A.G.A.) has adopted a resolution asking Congress to repeal the Public Utility Holding Company Act (PUHCA) and establishing PUHCA repeal as a high priority. A.G.A. says it will actively lobby Congress and the Clinton Administration for repeal. The association seeks to continue the tangible consumer benefits of deregulation and increased competition in the natural gas industry. The A.G.A.

Identifying Market Power in Electric Generation

To what extent should regulation yield to market forces in setting wholesale electric prices? The Federal Energy Regulatory Commission (FERC) posed this question when it sought comments on whether open transmission access would eliminate the need for anything like traditional rate regulation.