Commission

FERC Claims Power to Order Dam

The Federal Energy Regulatory Commission (FERC) has adopted a policy statement on hydroelectric plant decommissioning, claiming authority to deny new project licenses when existing licenses expire and to order owners to remove a dam during the relicensing process. These measures would only be applied if the FERC concludes that a project, no matter how many conditions were imposed, could no longer meet the comprehensive development standard of the Federal Power Act (FPA) (Docket No. RM93-23-000).

The statement was one of three hydroelectric orders considered as a group.

Byline: 
Lori A. Burkhart
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FERC Sets Guides for SO2 Emission Allowance Cost Recovery

The Federal Energy Regulatory Commission (FERC) has approved a policy statement and interim rule establishing guidelines for recovering the cost of sulphur dioxide (SO2) emission allowances in wholesale rates. The FERC also ruled that utilities do not need its approval to sell or transfer emission allowances, because allowances are related to electric generation, which lies beyond FERC jurisdiction (Docket No. PL95-1-000).
Byline: 
Lori A. Burkhart
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Power Marketers Flex at FERC

Electric utilities beware. Power marketers are not only here to stay, but their ranks are growing. The Federal Energy Regulatory Commission (FERC) logged approximately 100 applications in 1994, compared to nine in 1993. About half have been acted on already.

The fledgling industry is also staking out its regulatory territory. Notably, on December 14, the FERC ordered the Tennessee Valley Authority (TVA) to provide nonfirm transmission service to AES Power Inc.

Byline: 
W. Lynn Garner and Lori A. Burkhart
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Perspective

The meltdown of the Clinton health reform plan suggests a return to competition-that managed care, capitated payment, and regional alliances will assume leading roles in the delivery of health service. But that conclusion may prove premature. Missing from the debate is a discussion of the true costs and implications of these emerging health alliances and health management organizations (HMOs).

Managed care may not offer the expected panacea for containing health costs.

Byline: 
Thomas P. Weil, PhD
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California Revises "Blue Book" Schedule

The California Public Utilities Commission (CPUC) has issued an interim decision on restructuring the California electric industry (R.94-04-031). The decision calls for the CPUC to propose a policy decision for comment on March 22, 1995, and to adopt a policy decision 60 days later. That policy decision would then become effective in September 1995. To that end, the interim decision establishes a working group to examine how existing social, economic, and environmental programs would hold up under the range of proposed restructuring models.
Byline: 
Lori A. Burkhart and W. Lynn Garner
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Williams Moves into the Northeast

On December 12, the Williams Companies Inc. and Transco Energy Co. announced a cash tender offer by Williams to acquire up to 24.6 million shares, or 60 percent of Transco stock, for $17.50 per share. Combined with assumed debt and preferred shares, Williams' acquisition cost will total about $3 billion. Following completion of the tender offer, a newly formed subsidiary of Williams will be merged into Transco, with Transco continuing as a wholly-owned subsidiary of Williams. The boards of directors of both companies have unanimously approved the transaction.
Byline: 
Lori A. Burkhart
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People

Irl F. Englehardt, president and CEO of Peabody Holding Co. Inc., was elected to a two-year term as chairman of the National Coal Association. Steven F. Leer, president and CEO of Arch Mineral Corp., was elected vice chairman. Englehardt will be the 49th industry executive to serve as chairman in NCA's 77-year history.

Gerald E. Putman was made senior v.p. of a new customer service business unit at New York State Electric & Gas Corp.

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Frontlines

In the energy industry, no question defies resolution more than electromagnetic fields (EMF).

The Edison Electric Institute (EEI) reported in late December that electric utilities have contributed close to $80 million for EMF research since the early 1970s. And new efforts are taking shape.

Byline: 
Bruce W. Radford
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Onsite Storage: The Impact of State Regulation on Nuclear Policy

(SIDE SUBHEAD)

Nuclear plant licensees could face an added level of state regulation just as they move to cut costs.Permanent disposal capacity for low-level radioactive waste (LLW) and spent nuclear fuel, long a top priority for the nuclear industry, has not yet become a reality. But the storage question draws more attention for its impact on nuclear power costs as electric generation grows more competitive.

Byline: 
Nicholas S. Reynolds and Robert L. Draper
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