Commission

Telco Business Services Ruled Noncompetitive

An Illinois appeals court has upheld a ruling by the Illinois Commerce Commission (ICC) that certain services offered to business customers by Illinois Bell Telephone Co. are noncompetitive.

The local exchange carrier (LEC) had reclassified the services (distance-sensitive calls, credit card calls, and operator assistance) as competitive to take advantage of pricing flexibility permitted under the ICC's regulatory reforms for the industry.

Indiana Launches LEC Competition

The Indiana Utility Regulatory Commission (URC) has opened the state's local telephone market to competition by ordering local exchange carriers (LECs) to offer "bundled resale" of retail local exchange and related services.

The ruling applies to the state's two major LECs, Ameritech and GTE North, as well as to other smaller companies subject to the provisions of the federal Telecommunications Act of 1996 (Act).

Marginal Cost Drives Electric Rate Design

The Maine Public Utilities Commission (PUC) has approved a new multi-year revenue requirement and rate design plan for Maine Public Service Co. (MPS) designed to serve as "the starting point for MPS and its customers' participation in an increasingly competitive market."

The plan allocates an overall revenue increase of 4.4 percent to produce a 5.5-percent increase in residential rates and a 7.5-percent hike in commercial rates. Other customer groups will see smaller boosts in rates or slight reductions.

Maine Plan Would Spin Off Generation

A draft plan issued by the Maine Public Utilities Commission (PUC) to restructure the state's electric industry, currently under review at the state legislature, would require investor-owned utilities to separate operation of generation assets from the rest of the company by 2000, and to divest themselves of those assets by 2006.

The plan would also require retail electric suppliers to maintain a minimum block of renewable supply, and recommend that the state legislature fund low-income assistance currently provided as part of utility rate structures through a general tax

Cost Decoupling Placed on Hold

While approving an increase in base rates of $26.8 million for Pacific Power and Light Co., the Oregon Public Utility Commission (PUC) has rejected a proposal to adopt a revenue decoupling mechanism and establish a systems benefits charge as part of the rate ruling.

Florida Rejects Discount Rate Proposal

The Florida Public Service Commission (PSC) has rejected Gulf Power Co.'s proposal to offer negotiated contracts to large customers that would otherwise procure power from another source. The utility had proposed using incremental cost as the price floor for its negotiations, but the PSC found the procedures for administering the tariff "insufficient to justify a departure from offering electric service based on standard tariffed rates." Re Gulf Power Co., Dkt. No. 951161-EI, Order No. PSC-96-0845-FOF-EI, July 2, 1996 (Fla.P.S.C.).


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Kentucky Approves Gas-cost Incentives

The Kentucky Public Service Commission (PSC) has approved two gas-cost incentive programs proposed by Columbia Gas of Kentucky, Inc., a natural gas local distribution company (LDC). Under the first phase of the experiment, the LDC will retain 35 percent of its offsystem sales, returning 65 percent to ratepayers. Phase two allocates to ratepayers all capacity-release revenues received by the company up to a benchmark level.

Ohio Oks Real-time Program

The Ohio Public Utilities Commission (PUC) has authorized Ohio Edison Co. to begin a real-time pricing (RTP) experiment that will test customer response to hourly price signals. The program allows customers to shift usage to a lower-price period or to add usage during lower-price periods.

Participation is limited to large usage customer classes. The program rate is designed so that if a customer's actual and historical usage patterns match, the bill will be the same as if the customer was not on the RTP program. Re Ohio Edison Co., Case No. 96-436-EL-ATA, Aug.

California Backs Loans for WPEX Software

The California Public Utilities Commission (CPUC) has authorized Pacific Gas and Electric Co., Southern California Edison Co., and San Diego Gas and Electric Co. to guarantee notes totaling $250 million for loans to two trust funds to support the development of computer hardware and software for the state's proposed independent system operator (ISO) and power exchange (WEPEX), but commissioner Jesse J. Knight has dissented, worrying about cost control.

As noted in a parallel story ("PUC Loans Would Bolster ISO, Power Exchange," Headlines, p.

PJM Pool Moves Forward

PECO Energy Co. has filed its "Open Market Plan" at the Federal Energy Regulatory Commission (FERC) for restructuring the Pennsylvania-New Jersey-Maryland (PJM) power pool. PECO is the only member not joining a majority PJM restructuring order filed July 24 with the FERC.

The plan proposes an independent system operator (ISO) and electric transmission service priced on a regional, postage-stamp basis. The wholesale market would be based on bilateral transactions, with a residual pool for hourly energy.