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Law & Lawyers

Calif. Maintains LEV Programs

The California Public Utilities Commission (CPUC) has approved requests by the state's major energy utilities to maintain (and in some cases expand) funding for certain programs designed to aid in the development of low emission vehicles (LEV) and infrastructure. However, the CPUC approved less than the total requested by the state's energy utilities and stressed that ratepayer funding should not be used to support utility involvement in the competitive transportation market.

Byline: 
Phillip S. Cross
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Pataki Endorses LILCO Dismantlement

In response to a mandate by New York Gov. George E. Pataki, a Long Island Power Authority (LIPA) advisory team has developed a proposal to dismantle the Long Island Lighting Co. (LILCO), hoping to reduce electric rates by as much as 12 percent. In response, Moody's Investors Service has changed the direction of its review of LILCO's credit ratings from negative to uncertain.

LIPA intends to create a LIPA "wire company" that would buy LILCO's transmission and distribution assets, including some payment for the Shoreham plant.

Byline: 
Lori A. Burkhart
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S&P Links Retail Wheeling to Revenue Decline

A new Standard & Poor's (S&P) report, Direct Access Threatens Utility Revenues, predicts that electric utility revenues would decline 6 to 16 percent ($10 to $26 billion) if retail direct access is implemented. S&P bases its findings on two scenarios: In the severe case, direct access occurs immediately for all customer classes and no surcharge mechanism recovers lost revenues. The more reasonable scenario assumes that only large commercial and industrial (C/I) users will exercise their right to choose direct access and that 50 percent of C/I lost revenues will be recovered in rates.

Byline: 
Lori A. Burkhart
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Virginia Reviews Municipalization Threat

The Virginia State Corporation Commission (SCC) has stepped into the middle of a dispute between Virginia Electric and Power Co., an electric utility, and the City of Falls Church, VA. The city had planned to displace the utility as the supplier of electricity for city residents by purchasing a minimum amount of facilities from the utility and soliciting bids for power supplies outside the local system.

Byline: 
Phillip S. Cross
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Power Pundits Make Their Pitches

Two congressmen and a Clinton Administration official recently weighed in on the future of electric industry deregulation, giving observers an inkling of what they might expect in legislation or policy this year.

Sen. J. Bennett Johnston (D-LA), the ranking minority member of the Energy and Natural Resources Committee, spoke before the Electric Generation Association (EGA) January 22. Just three days later he introduced S. 1526.

Byline: 
Joseph F. Schuler, Jr.
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Mojave Gets Green Light, But Troubles Persist

The Federal Energy Regulatory Commission (FERC) has issued an order denying rehearing, effectively allowing Mojave Pipeline Co. (MP) to construct and operate its Northward Expansion Facilities in California (Docket No. CP93-258-007). The FERC has already issued five substantive orders in the proceeding.

Especially contentious was the clash with the California Public Utility Commission (CPUC) over jurisdiction, leading to a February 1995 FERC order holding that the Northward Expansion was an interstate pipeline subject to federal oversight.

Byline: 
Lori A. Burkhart
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To Pool or Not to Pool? Toward a New System of Governance

What are the essential characteristics of the system of governance that will be required for a new, North American electric industry with interconnected and interdependent transmission networks and trading areas?

Electric transmission networks are natural monopolies, as are the many independent network

control systems that coordinate the use of generators and loads and preserve system reliability.

Byline: 
Charles G. Stalon
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The Year Ends With a Bang

Public utility stocks showed no signs of letting up during the fourth quarter of 1995. The Public Utilities Stock Index rallied a brisk 234.66 points, or 6.38 percent, to close at 3910.01. Not to be outdone, the Dow Jones Industrial Average gained 355.86 points, or 7.47 percent, to close at 5117.12, and the S&P 500 Stock Index climbed 34.21 points, or 5.88 percent, to close at 615.93.

Certain stocks sparkled more than others:

SCANA Corp.

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