Michigan Public Service Commission

Detroit Edison Sole Supplier for "big Three"

Detroit Edison Co. (DE) has received approval from the Michigan Public Service Commission for

10-year sole-supplier contracts for electric power and related services with Chrysler, Ford, and General Motors. (Case No.

U-10646). DE is believed to be the first utility in the nation to secure such agreements for an entire industry in its service territory

The almost identical contracts involve a

1,000-megawatt combination of firm and interruptible power, giving rate discounts to the automakers.

IntraLATA Dialing Parity Spreading

To further competition in the state's telephone industry, the Florida Public Service Commission (PSC) has decided to require local exchange telephone carriers (LECs) to offer intraLATA presubscription as part of the access services provided for competitors in the toll-call market. It found the lack of "1+" dialing parity (experienced by customers who choose interexchange carriers (IXCs) rather than LECs for intraLATA toll calling) a competitive barrier that could be removed without diminshing access to basic telephone service for Florida consumers.

Michigan Defers Approval of Antibypass Contract

The Michigan Public Service Commission (PSC) has rejected a request for expedited approval of a special contract between Consumers Power Co. and a natural gas transportation customer, the James River Corp. Consumers Power negotiated the contract when it learned that James River could bypass the local gas distribution system through a direct connection with a nearby pipeline operated by Panhandle Eastern Pipe Line Corp. The utility claimed that James River could rescind the contract and arrange for bypass service if approval was not obtained by February 3, 1995.

Financial News

There is a price to pay for becoming a lean, mean fighting machine, and utilities paid the price in 1994.

A number of electric utilities saw revenues increase last year on the strength of higher sales, but the costs associated with laying off hundreds of employees and downsizing company operations took a significant bite out of earnings.

A PUBLIC UTILITIES FORTNIGHTLY survey of the nation's top 20 electric utilities shows an increase in their combined 1994 revenues to $107 billion, a healthy 3.6-percent rise over the previous year.

Consumers Power Targets "At-Risk" Customers

Consumers Power Co. has asked the Michigan Public Service Commission to approve a Special Competitive Service (SCS) rate to help retain industrial customers who threaten to leave the system. The SCS rate would be offered to customers who can obtain their power elsewhere and to new customers considering locating or expanding facilities in Michigan. "[A]pproval of this rate would grant Consumers Power the ability to negotiate special contracts with certain `at risk' large industrial customers which have competitive energy supply options," says Michael G.

Michigan Defers Approval of Antibypass Contract

The Michigan Public Service Commission (PSC) has rejected a request for expedited approval of a special contract between Consumers Power Co. and a natural gas transportation customer, the James River Corp. Consumers Power negotiated the contract when it learned that James River could bypass the local gas distribution system through a direct connection with a nearby pipeline operated by Panhandle Eastern Pipe Line Corp. The utility claimed that James River could rescind the contract and arrange for bypass service if approval was not obtained by February 3, 1995.

Financial News

There is a price to pay for becoming a lean, mean fighting machine, and utilities paid the price in 1994.

A number of electric utilities saw revenues increase last year on the strength of higher sales, but the costs associated with laying off hundreds of employees and downsizing company operations took a significant bite out of earnings.

A PUBLIC UTILITIES FORTNIGHTLY survey of the nation's top 20 electric utilities shows an increase in their combined 1994 revenues to $107 billion, a healthy 3.6-percent rise over the previous year.

Consumers Power Targets "At-Risk" Customers

Consumers Power Co. has asked the Michigan Public Service Commission to approve a Special Competitive Service (SCS) rate to help retain industrial customers who threaten to leave the system. The SCS rate would be offered to customers who can obtain their power elsewhere and to new customers considering locating or expanding facilities in Michigan. "[A]pproval of this rate would grant Consumers Power the ability to negotiate special contracts with certain `at risk' large industrial customers which have competitive energy supply options," says Michael G.

Discount Tariff Hits Snag

The Michigan Public Service Commission (PSC) has dismissed an application by Consumers Power Co. for authority to implement its controversial "Rate K" competitive tariff for electric service. The utility had claimed that greater pricing flexibility was necessary to meet substantial competition from self-generation, new municipal utilities, and utilities outside the state, but the PSC found that due to numerous objections to the rate plan and subsequent modifications of the proposal by Consumers, the proceeding had become so complex that the docket should be closed.

Michigan Orders Release of Info on Electric Competition

The Michigan Public Service Commission (PSC) will require Energy Michigan (em a nonprofit corporation whose members promote expanded use of cogeneration, IPPs, and waste-to-energy projects (em to provide Consumers Power Co. with information concerning the extent of existing and proposed self-generation projects that pose a competitive threat. The PSC directed Energy Michigan to answer interrogatories served by Consumers after Energy Michigan intervened in a proceeding concerning a new "competitive tariff" proposed by the utility.