Commission

NC Supreme Court Settles Avoided-cost Dispute

The North Carolina Supreme Court has upheld state regulators' decision to reprice payments made by Virginia Electric and Power Co. (Vepco) to Ultra Cogen Systems, a qualifying facility (QF), for power purchased under avoided-cost contracts approved by Virginia's commission. The North Carolina Utilities Commission (UC) had disallowed $1.39 million in capacity costs while setting rates for the utility's Carolina Power division.

Arkansas Encourages Wholesale Electric Competition

Citing its desire to promote a fully competitive wholesale market for electric power, the Arkansas Public Service Commission (PSC) has waived restrictions on serving wholesale and retail loads in the state for Entergy Power Inc. Entergy had proposed to sell Oklahoma Gas & Electric Co. power wheeled from two generating facilities by Arkansas Power & Light Co. (AP&L), an Entergy affiliate.

DSM Bidding Dispute Left to Utility

The Washington Utilities and Transportation Commission (UTC) has refused to mediate a dispute between Washington Water Power Co. and a bidder in the utility's 1991-92 resource procurement auction. The bidder, SESCO Inc., complained after the utility found its demand-side management (DSM) program proposal not cost-effective. The UTC said the decision to close the bidding and not pursue a contract with SESCO was a matter for review in the utility's next general rate case.

Maine PUC Asserts Right to Review Utility EWG Investments

The Maine Public Utilities Commission (PUC) has rejected a settlement agreement that would have allowed Central Maine Power Co. to invest $30 million over the next three years in unspecified, unregulated power projects. The utility originally applied to create exempt wholesale generation (EWG) entities and related subsidiaries.

DC Modifies Preconstruction Review

The District of Columbia Public Service Commission (PSC) has amended regulations governing the scope of its authority over facilities constructed outside of the municipality. Late last year, the District of Columbia Public Service Commission (PSC) issued comprehensive regulations governing the preconstruction review of utility power plants, transmission lines, cogeneration facilities, and independent power production facilities.

CPUC Delays Electric Rate Decision

The California Public Utilities Commission (CPUC) has decided to adopt a "wait and see" approach in general rate proceedings for utilities affected by its generic industry restructuring case. Southern California Edison Co. asked the CPUC to postpone ruling on marginal cost, rate design, and cost-allocation issues in its 1995 general rate case until it issues a policy order in the restructuring proceeding.

International Opportunities

Noting the growing global demand for new sources of energy, Congress tailored the Energy Policy Act of 1992 (EPAct) to make U.S. public utility holding companies more competitive abroad. First, it eased the Securities and Exchange Commission review of U.S. investment in foreign energy facilities. Second, it sought to expand U.S. participation in foreign energy-related projects to include U.S. technology as well as investment dollars.

FERC Allows "Retroactive" Rates

The Federal Energy Regulatory Commission (FERC) has approved a settlement permitting potential refunds or surcharges by New England Power Co. (NEP) and Northeast Utilities Service Co. (NU) on deferred rate issues relating to transmission services provided on facilities collectively known as the "New Hampshire corridor" (Docket Nos. ER92-764-000 and ER92-766-000).

When NU merged with Public Service Co. of New Hampshire (PSNH), the FERC authorized PSNH to dispose of its jurisdictional facilities.

EPA Approves Alternative-Fueled Vehicle Program

The Environmental Protection Agency (EPA) has approved a plan by 12 northeastern states and the District of Columbia (the Ozone Transport Commission (OTC)) to improve air quality under the Clean Air Act. The plan allows the OTC to establish an alternative-fuel vehicle program fashioned after California's, beginning in model year 1999, or to choose other measures that would provide equivalent pollution reductions. The OTC plan envisions the sale of certain advanced technology vehicles that reduce pollution by more than 70 percent.

Pool Adds Transmission Distance Rate

The Federal Energy Regulatory Commission (FERC) has amended the Mid-Continent Area Power Pool (MAPP) agreement, adding a distance-based transmission service charge for short-term transmission services provided by MAPP members (Docket No. ER94-1529-000). Previously, MAPP members provided reciprocal short-term transmission services to each other, charging only for transmission losses.

MAPP wants to apply a distance-based transmission charge for wholesale coordination transactions of four years or less between pool members.