I was surprised and disappointed at the limited and unbalanced perspective that Bruce Radford brought to his comments on securitization ("Wall Street's New Game," PUBLIC UTILITIES FORTNIGHTLY, April 15, 1997, p. 4).
The article implies that the push for securitization legislation is being driven by the investment community's desire to create an investment product with a guaranteed return.
"When they come to town ... we'll ... accompany them to Capitol Hill ... to make their trip to Washington a 'two-fer,' if you will."
Paul Rodgers knocked NARUC on its ear last July when he announced his resignation as executive of that century-old association.
Rodgers, also general counsel, had served the National Association of Regulatory Utility Commissioners for more than 30 years.
His unexpected move came in the midst of strategic planning at NARUC.
The Michigan Public Service Commission has authorized Michigan Gas Utilities to increase rates and has ruled that revenues booked by an affiliate that offers administrative, gas brokering and appliance repair services should be included as part of the utility's net income.
The commission said Michigan Gas can increase rates $1.7 million, including an allowance for return on equity of 10.75 percent.
Michigan Gas had excluded from rate calculations revenues found unrelated to utility operations, such as an unregulated affiliate's propane operations.
The Idaho Pubic Utilities Commission has approved two new electric market experiments to test a market-based pricing tariff proposed by one electric utility and a direct-access pilot program proposed by another.
Market-based pricing. It authorized Idaho Power Co. to offer industrial customers, on an experimental basis, the option of purchasing power under a market-based rate schedule. Customers who contract for 5 to 10 megawatts of firm demand at one delivery point qualify for the pilot tariff program.
Signaling victory over one of the more complex issues in the move to competition in the local telephone market, regulators in Connecticut and New York have adopted rate plans for unbundled interconnection services offered by incumbent local exchange carriers.
Both states also recently approved the wholesale discount rate that the LECs must apply to existing services when offering them for resale by competitive companies. See Re AT&T Communications of New York, Inc., 173 PUR4th 274 (N.Y.P.S.C. 1996); Re So. New England Tel. Co., Docket No. 95-06-17, March 25, 1997 (Conn.D.P.U.C.).
In a notice of proposed rulemaking, the Federal Energy Regulatory Commission has posed a new method of funding the Gas Research Institute, while extending the present funding method for one year (see, FERC Docket Nos. RM97-3-000 and RP97-149-000).
The current funding mechanism allows GRI-member pipelines to discount a FERC-approved GRI surcharge, then remit to GRI only those funds recovered. The FERC noted that this mechanism threatens GRI's research, development and demonstration efforts.
New York state's electric utilities in a joint filing at the Federal Energy Regulatory Commission have called for creation of an independent system operator, a power exchange and a reliability council, termed the "New York State Reliability Council."
The proposal stems from a collaborative process and is intended to complete the transition to full compliance with FERC Order 888. It includes numerous provisions:
• New York ISO. Would control state's bulk power transmission facilities;
• Transmission Pricing.
The proposed merger of Northern States Power Co. and Wisconsin Energy Corp. to form Primergy has been called off because of delays by regulatory authorities at both the federal and state levels.
"After thorough consideration, we have mutually agreed to terminate our plans," said Richard A. Abdoo, Wisconsin Energy chair, president and CEO.
Senate panel lobs shots at FERC's slow merger approvals.
Wall Street analysts and shareholder reps are urging Congress to help electric utilities recover stranded costs during nationwide deregulation to prevent a "cratering" of energy stocks.
One analyst recently testified that investors never expected 100-percent recovery. Another suggested that federal legislators should let states hammer out their own solutions.
But determining fair compensation state by state won't be easy, as witnesses and lawmakers conceded at recent hearings on Capitol Hill.
An agreement between PacifiCorp and Bonneville Power Administration will lead to an 8-percent rate cut for PacifiCorp.'s Utah Power irrigation customers in Southeastern Idaho. Impetus for the agreement came from two Idaho legislators, the governor's office and the congressional delegation.
The proposed agreement was filed at the Idaho Public Utilities Commission and also will go through BPA's internal review process. The agreement will result in payments totaling $47.7 million over the next four years from BPA to PacifiCorp for Utah Power's Idaho residential irrigation customers.