Commission

Sound bites from state and federal regulators.

Pole Attachment Rates. Michigan PSC adopts new costing method to set utility pole attachment rates, aimed at developing competition in telecommunications services and discouraging investment in duplicate facilities by new market entrants. It cautions that changes in markets or regulatory environment might prompt a reconsideration. Case Nos. U-10741 et al., Feb. 11, 1997 (Mich.P.S.C.).

Internet Tariff Posting. New York PSC authorizes New York State Electric and Gas Corp.

The Federal Energy Regulatory Commission recently gave final approval to a two-year experiment to track electricity as it travels over transmission lines (Docket No. ER97-697-000).

The experimental program, approved March 25, finalizes work proposed by a group of seven companies working independently on the General Agreement on Parallel Paths (GAPP). Other GAPP members had chosen to disband the formal GAPP committee in 1995.

The program calls for information on transmission paths to be made available electronically to all participants.

California's three largest investor-owned electric utilities have submitted their proposals to the Federal Energy Regulatory Commission for implementing an independent system operator and power exchange for the state's restructured electric industry (Docket Nos. EC96-19-001 and ER96-1663-001).

Last November, the FERC had conditionally approved an "acceptable framework" submitted by Pacific Gas & Electric Co., San Diego Gas & Electric Co., and Southern California Edison (the trustee for the ISO and PX is S.

Favoring a uniform federal mandate, but also a drawn-out transition period to let the industry "prepare" itself, Sen. Dale Bumpers (D-Ark.) has recently introduced federal legislation on electric industry restructuring with the admonition that new laws should assure benefits to residential consumers (em not just the large-load customers.

Bumpers, ranking Democrat, Senate Committee on Energy and Natural Resources, on April 7 addressed the American Gas Association's Natural Gas Roundtable in Washington, D.C., on electric restructuring, talking about his introduction of S.

The Minnesota Legislature is poised to pass a bill that would allow the state to take full advantage of any relief granted by federal courts in pending cases over the U.S. Department of Energy's nuclear waste disposal obligations.

State Senator Steve Murphy and state Representative Steve Timble introduced the legislation, which has support in both Houses. The legislation was introduced to ensure that state ratepayers would see immediate relief if ordered by federal courts in pending cases in the next several months.

Cities throughout the U.S. contemplating take over of a privately owned utility may be more likely to move forward now that the governor of New Mexico signed legislation that has made such a prospect easier in that state.

New Mexico Gov. Gary Johnson (R) on April 11 signed H.B. 1181, which allows the city of Las Cruces to condemn property owned by El Paso Electric Co., paving the way for the municipality to take over the local electric distribution system.

"We're very pleased," said Christopher Good, a spokesman for the city. Las Cruces plans to move forward from here, he added.

Virginia Power Co. has asked the Virginia Corporation Commission to freeze its base electric rates through 2002, which would set the average residential electric bill in 2002 at virtually the same as it was in 1992.

The base rate freeze is part of an alternative regulation plan submitted to the commission on March 24, which is designed to ensure stability for electric customers and shareholders during the move toward more competitive markets.

According to Robert Bloom, a commissioner at the Pennsylvania Public Utility Commission, an article in the Philadelphia Inquirer regarding the release of the 1996 report card on Pennsylvania utilities contained "misinformation" and was "distorted."

That article reported the PUC refused to issue the 1996 report card because the commissioners disagreed on the amount of performance information that should be released in the new competitive environment (see "Headlines," FORTNIGHTLY, 3/15/97).

Competitive electric provider Electric Lite has drawn the attention of the South Carolina Public Service Commission with its promises of guaranteed rate reductions of 20 percent.

Electric Lite intends to compete against South Carolina investor-owned utilities for customers when the Legislature opens the market to competition.

The proposed "Competitive Power Act," if approved by the Legislature, would open the state's electric markets to competition in January 1998.

In the first order under a 1995 law designed to increase competition in the electric wholesale market, the Texas Public Utilities Commission ordered Central Power & Light Co. to cut rates.

Meanwhile, Moody's has predicted that legislation introduced in the Texas Senate and House giving choice to small ratepayers is unlikely to pass.

Rate Cut. On March 31, the PUC ordered a $32.3-million rate cut for Central Power & Light Co. retroactive to May 1996. An additional $16.4-million rate cut must be implemented annually in 1998 and 1999 (Docket No. 14965).