The Michigan Public Service Commission (PSC) has approved a comprehensive settlement in a series of closely watched cases in which Consumers Power Co. had proposed to realign electric rates and cost recovery to anticipate retail competition in electricity.
Among other points, the settlement allows Consumers Power to implement a "direct access" tariff to meet anticipated competition for its largest customers.
Sound bites from state and federal regulators.
Natural Gas Briefs
Gas Rate Indexing. Alabama continues its a rate stabilization and equalization (RSE) procedure for Alabama Gas Corp. (rates adjusted quarterly to conform return on equity to a preset range). Commission says RSE plan has helped company address recent gas market changes such as supply diversification, system bypass, and competition. Docket No. 25600, Oct. 7, 1996 (Ala.P.S.C.).
Gas Motor Vehicles. Peoples Natural Gas Co.
Which matters most: Cost? Price? Sales? Regulation?
Many investors no longer think of electric utility stocks primarily as dividend-rich, income-oriented investments. Instead, they have begun to consider new criteria in evaluating utility stocks (em criteria that might help explain some of the variations in equity price performance now seen among various utility companies.
The Nuclear Regulatory Commission (NRC) has launched a discussion site on the internet as a first step towards updating plans for the "Licensing Support System," an electronic information management program to be used in the eventual licensing of a high-level radioactive waste repository.
The program, known as "LSSNet," may be reached at its internet address: http://lssnet.llnl.gov. It will continue through May 20, 1997. The internet dialogue is not intended to replace formal comments on any proposed rule that may be developed to update the licensing support system. t
Lori A.
Salt River Project (SRP) says it may ask the Federal Energy Regulatory Commission (FERC) to resolve a dispute with El Paso Electric Co.
More than a year and a half after commissioners Hoecker and Massey first raised eyebrows in various concurring and dissenting opinions by suggesting changes in the merger approval process for electric utilities, the Federal Energy Regulatory Commission (FERC) on December 18 issued Order 592, a "policy statement" designed to "update and clarify" the criteria it will use to ensure that mergers remain consistent with the public interest.
Backing away from the historical six-part merger approval test established in 1966 in the Commonwealth Edison case, the FERC announced that it would ap
Voters in New Mexico have decided to abolish the New Mexico Public Utility Commission, as well as the New Mexico Corporation Commission.
The two agencies would be replaced by a five-member, Public Regulatory Commission, which would regulate electric, water, telephone, and insurance companies, plus natural gas and oil pipelines. t
Lori A. Burkhart is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.
American National Power announced three executive changes: Joseph E. Cofelice, senior v.p., was given the added post of COO; Jim Murray, senior v.p., was given additional duties of CFO; and David L. Coke, director-asset optimization, was promoted to operations v.p.
Peter W. Delaney, a cost-cutting commissioner in the New York Office of General Services, was appointed senior v.p.-business services at the New York Power Authority. The Authority also promoted Gerard V. Loughran, a principal attorney, to v.p.-human resources.
The Institute of Gas Technology (IGT) elected Roger A.
Illinois has yet to face the issue, but when it does, it may find the road blocked by jurisdictional rules at the FERC. According to estimates by Moody's Investor Service, the state of Illinois would face stranded costs of nearly $6 billion if it should mandate retail wheeling to allow the state's electric utility customers to choose their own supply of electricity.
In two recent rulings, the New York Public Service Commission (PSC) has authorized electric utilities to call upon ratepayers to help cover losses from rate discounts and write off sunk investment in nuclear power plants. Ratepayer contributions in each case will come through incentive clauses by which revenues or losses are shared on an 80-20 basis between customers and company stockholders.
Rate Discounts. In one case, the PSC allowed Niagara Mohawk Power Corp.