DC

Sound bites from state and federal regulators.

Gas Curtailment. New York PSC approves updated curtailment and interruption tariffs for many of the state's natural gas local distribution companies. It had asked the LDCs to develop new rules to reflect growing competition and ensure gas deliveries for core customers during a supply crunch. Case 93-G-0932, March 24, 1997 (N.Y.P.S.C.).

T & D Classification. New York PSC opens proceeding to distinguish between electric transmission and distribution facilities.

The Pennsylvania Public Utility Commission has authorized PG Energy Inc. to implement several tariff modifications

regarding balancing charges and transportation service requirements.

It permitted the LDC to impose a balancing charge of $0.66/Decatherm per unit of imbalance on transportation customers and aggregators whose actual daily deliveries of gas vary by more than 2.5 percent of requirements. The commission rejected a proposal to reduce the balancing charge to account for the offsetting nature of usage among transportation users as a whole.

Citing concerns about gas price volatility, the New Jersey Board of Public Utilities has ruled that Public Service Electric and Gas Co. should maintain its existing annual fuel cost adjustment mechanism rather than shift to a monthly charge as originally proposed for its local gas distribution customers.

Under a settlement approved by the board, the LDC will have the option to impose the monthly charge on its general-service and large-volume customers.

A recent conversation:

"When was the demise of the regulatory bargain? What you say is true, but at some point you had to know the bargain was over."

(em A state utility commissioner

"Beats me, it doesn't seem to be over yet. The electric industry still has a duty to serve all customers, and it must charge below-market rate confiscatory for many of our services because of the regulatory bargain.

While directing PNM Gas Services ( a division of Public Service Company of New Mexico) to reduce rates for gas service, the New Mexico Public Utility Commission has redesigned residential rates to reinstate the once-discredited notion of recovering fixed costs in the commodity charge.

In the same case, the commission also rejected recovery of discount costs and other fees the utility paid and a proposal by the utility to "rebundle" sales and transportation rates by end-use class.

The PUC ordered PNM to reduce gas service rates $6.958 million.

Two states have decided to review the high cost of gas this past winter and the effect the price hike has had on the states' gas utilities.

Florida. While granting requested rate relief on an "expedited basis" to Florida Public Utilities Co., the Florida Public Service Commission said it would conduct a prudence review of the purchased gas costs during its next scheduled PGA audit proceeding.

Sound bites from state and federal regulators.

Pole Attachment Rates. Michigan PSC adopts new costing method to set utility pole attachment rates, aimed at developing competition in telecommunications services and discouraging investment in duplicate facilities by new market entrants. It cautions that changes in markets or regulatory environment might prompt a reconsideration. Case Nos. U-10741 et al., Feb. 11, 1997 (Mich.P.S.C.).

Internet Tariff Posting. New York PSC authorizes New York State Electric and Gas Corp.

Motivated by numerous consumer complaints regarding substantial, unexpected increases in bills for natural gas service, the New Mexico Public Utility Commission has fined Public Service Company of New Mexico, finding that the utility knowingly understated gas cost data in prior adjustment clause filings to avoid commission review of an ongoing gas price crisis.

The commission suspended the $2.2-million fine, however, in light of its decision to prevent PSNM from collecting more than $1.5 million in purchased gas revenues associated with the understated gas cost projection.

In a series of rulings regarding Wisconsin Electric Power Co.,

the Wisconsin Public Service Commission has directed the

utility to reduce electric charges and natural gas service rates.

In a similar ruling, the commission also has authorized Wisconsin Public Service Corp. to boost rates for natural gas, while trimming rates for electric service.

Wisconsin Electric. The commission ordered Wisconsin Electric to cut electric rates by $7.383 million. Rate of return on common equity was set at 10.8 percent.

The Federal Energy Regulatory Commission has approved the merger of Public Service Co. of Colorado and Southwestern Public Service Co. to create "New Century Energies" (Docket Nos. EC96-2-000 and EC96-2-001).

In a separate order, the FERC has approved the open access transmission tariff for Southwestern Public Service, Public Service Co. of Colorado, and its subsidiary, Cheyenne Light, Fuel and Power Co. (Docket No. ER96-2572-000).

Public Service Co. of Colorado and Southwestern Public Service Co. had filed an unopposed settlement agreement.