Commission

While setting fuel-cost, adjustment-clause rates for Ohio Power Co., a subsidiary of American Electric Power Co., Inc. (AEP), the Ohio Public Utilities Commission (PUC) has ruled that the utility may include emissions-allowance-trading brokerage fees as an expense in determining its new electric fuel-component rate. The PUC found the brokerage fees "directly and justifiably related" to the sale of emission allowances, hence qualified for recovery under adjustment-clause regulations.

The Florida Supreme Court has ruled that the state Public Service Commission (PSC) failed to properly factor in "customer preference" when resolving a territorial dispute between two electric utilities, Gulf Coast Electric Cooperative and Gulf Power Co. The PSC had ruled that Gulf Power should serve a new correctional facility that the state was planning to locate in West Florida, even though Gulf Coast had participated in the site-selection process and was favored by county and state authorities.

The Minnesota Supreme Court has overturned a decision of the Minnesota Public Utilities Commission (PUC) to impute revenues while setting rates for Minnegasco (em a division of Noram Energy Corp. and a natural gas local distribution company (LDC) (em in order to compensate ratepayers for the value of corporate goodwill enjoyed by an affiliated customer appliance business. (The state Court of Appeals had upheld the PUC in a 1995 ruling. See Minnegasco, a Division of Noram Energy Corp. v. Minnesota Public Utilities Commission, 529 N.W.sd 413, 160 PUR4th 453 (Minn. Ct. App.

Utilities in two states have taken steps to exert tighter control over meter-reading services.

The Michigan

Public Service Commission (PSC) has authorized Consumers Power Co., a local distribution company (LDC), to revise its operating rules governing centrally metered service installations.

The Michigan Public Service Commission (PSC) has upheld a previous ruling finding it prudent for Michigan Consolidated Gas Co. to lock in a reasonable cost of gas through a series of gas-supply contract elections of alternative prices tied to the NYMEX (New York Mercantile Exchange) gas futures market. The PSC commented on its earlier ruling, however, to clarify that its remarks on the relatively small effect of the pricing decisions on the overall cost of gas for the local distribution company (slightly more than 1 percent) did not constitute a new policy.

The Federal Energy Regulatory Commission (FERC) has rejected a request by NorAm Gas Transmission Co. for confidential treatment of its negotiated rates, saying that it would no longer accept for processing any rate sheets marked "confidential" or "privileged" (Docket Nos. RP96-200-002 and RP96-200-003). But Commissioner James J. Hoecker did note that rate disclosure could result in competitive harm, something the FERC should investigate in the future. t

Lori A. Burkhart is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.

The Federal Energy Regulatory Commission (FERC) has set for hearing the proposed merger of Public Service Co. of Colorado (PSCC) with Southwestern Public Service Co. (SPS), directing that an initial decision be issued by January 31, 1997 (Docket No. EC96-2-000).

Harkening back to the pre-Order 636 era, the Federal Energy Regulatory Commission (FERC) has issued two orders approving firm-to-the-wellhead rates for Transcontinental Gas Pipe Line Corp. (Docket Nos. RP92-137-016 and RP93-136-000) and Tennessee Gas Pipeline Co. (Docket Nos. RP91-203-000 and RP92-132-000).

In initial decisions, one administrative law judge had approved firm-to-the-wellhead rates in the Tennessee case; another had deemed them anticompetitive in the Transco case.

Dominion Resources, Inc. (DRI) has asked the Federal Energy Regulatory Commission (FERC) to declare its proposed "impacted megawatt mile (IMM)" tariff a just and reasonable method of pricing transmission service.

The IMM tariff would base electric transmission prices on the actual flows that result from each transmission service, taking account of the size and distance of power flows on all affected lines, the direction of the flows, line loadings, and the costs of relieving any congestion.