to limit eligibility to customers that use at least 600 kilowatt-hours. The PSC said the usage limitation would "restore the cost-effectiveness" of residential load management, which is designed to reduce peak demand, not energy usage.
Wyoming and Montana
are cracking Midwest coal markets,
despite local protectionism.
As pressures build steadily toward deregulation and increased competition between electric power generators, Western low-sulfur coal is emerging as the most economical fuel option for an increasing number of companies. The low cost of delivered fuel and avoidance of capital outlays offer attractive savings.
The Federal Energy Regulatory Commission (FERC) has approved a policy statement, Alternatives to Traditional Cost of Service Ratemaking for Natural Gas Pipelines, giving pipelines greater flexibility to use market-based, negotiated/ recourse, incentive, and other alternative rates (Docket Nos. RM95-6-000 and RM96-7-000). Pipelines may negotiate new rates with customers, but may not negotiate services that might degrade open-access service under Order 636. The FERC is still considering what type of service flexibility it should allow.
The California Public Utilities Commission (CPUC) has approved a corporate reorganization plan making San Diego Gas and Electric Co. (SDG&E) a wholly-owned subsidiary of a holding company structure formed by the utility. The utility said the reorganization would provide the separation of lines of business necessary to insulate regulated utility cash flows from the volatility and risk of competitive markets.
Citing heightened competition and lower earnings in the state's local exchange telephone market, the California Public Utilities Commission (CPUC) has frozen price caps for local exchange carriers (LECs) for most noncompetitive local services, and has suspended the 5-percent "x-factor" services for an intermediate level of competition.
Wisconsin Power & Light Co. (WP&L) has announced that it will withdraw from its current regional reliability council, Mid-America Interconnected Network, Inc. (MAIN), effective December 31, 1997. According to president and chief executive officer of WPL Holdings Errol B.
The Oregon Public Utility Commission (PUC) has authorized three new telecommunications companies to provide local exchange service in competition with existing carriers U S WEST Communications, Inc. and GTE Northwest, Inc.
The Illinois Property Tax Appeal Board has decided to cut taxes for Commonwealth Edison Co.'s (ComEd) Byron nuclear power plant. ComEd currently pays about $40 million in real estate taxes on the plant to Ogle County; the decision would lower the payments to $13.3 million. Ogle County will most likely appeal the decision, because certain local tax districts had planned on the revenue, and some have already spent the funds.
The Michigan Public Service Commission (PSC) has directed Consumers Power Co. to scale back any residential rate subsidies. The order appeared during a review of a proposed settlement in a series of applications to increase rates, revise depreciation methods, and offer discounts to industrial customers.
The PSC added, however, that the company should not try to eliminate the entire subsidy in a single step.
The Massachusetts Department of Public Utilities (DPU) has approved a discount electric rate contract for defense contractor Raytheon Co., a customer of Massachusetts Electric Co. (ME). But the secrecy surrounding the contract has created an uproar.
Although the terms of the contract are confidential, Raytheon said the three-year contract would yield "significant savings" on its $20-million annual electric bill. ME called the discount an "economic development" contract, which would keep Raytheon and its 17,500 employees from leaving the state.