New England Electric System

The eight utility

owners of the 560-megawatt Connecticut Yankee nuclear plant have decided to shut down the facility rather than make expensive repairs estimated at over $100 million, after having estimated plant costs at five cents per kilowatt-hour, or about 20-50 percent above the cost of replacement power.

Northeast Utilities, a 49-percent owner, said it would lay off about two-thirds of the plant's 322 employees. Other plant owners include Boston Edison, New England Electric System, the Cambridge Light Co., and Eastern Utilities Associates. t

Lori A.

Massachusetts-based New England Electric System (NEES) plans to sidetrack possible opposition by offering first rights to firm service on a proposed 25-mile electric transmission line to any potential users who will support the line during its permitting phase.

The new line, a 600-megawatt, high-voltage, direct-current (HVDC) submarine transmission cable from Connecticut to Long Island, would begin and end on utility property, requiring no new land takings and presumably raising few environmental issues.

Illinois has yet to face the issue, but when it does, it may find the road blocked by jurisdictional rules at the FERC. According to estimates by Moody's Investor Service, the state of Illinois would face stranded costs of nearly $6 billion if it should mandate retail wheeling to allow the state's electric utility customers to choose their own supply of electricity.

Residential Pilot Programs:

Doing,

Dealing?

Customer choice and electric restructuring may appear synonymous to regulators, but for utilities "choice" means "market share."

THERE WERE 19 PILOT PROGRAMS

planned or underway in the United States by the end of November, involving some 500,000 customers in all classes. The goal? To test competition in retail electric markets.

In the residential class, pilots were operating in Illinois, New Hampshire, and New York. Massachusetts expected to roll out its pilot by January 1. Pennsylvania was planning an April startup.

Annual Annual EPS

Close Close Percent 52-Wk 52-Wk Div Div Book P/E Last

Company Region 06/28/96 09/30/96 Change High Low Rate Yield Value Ratio 12 Mos.Electric Utilities

AEP Company Inc. Midwest 42.63 40.63 -4.69 44.75 35.13 2.40 5.91 22.68 13 3.10

Unicom Corp.

Stranded-cost recovery plus incentives for renewable energy.A New England utility executive told a U.S.

The Massachusetts Attorney General and the New England Electric System (NEES) have unveiled a plan to restructure electric utilities in Massachusetts (em "Consumers First."

The plan would allow all residential and business customers of investor-owned utilities to choose their electric supplier on January 1, 1998, and mandates that all customers receive a minimum 10-percent reduction on monthly bills. Existing purchased-power contracts would be honored, and approved utility investments recovered, subject to independent market valuations.

Public Utilities Fortnightly asked eight commissioners about the demands of restructuring and about an issue particular to their state.

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Comments by P.

Ronald L. Adams, an executive from Transcontinental Gas Pipeline, was named president of CNG Transmission Corp. He replaces L.J. Timms, Jr., who retired.

Lee Elder was hired by GE Nuclear Energy as manager of market development. Elder was g.m. of nuclear marketing and technology for Black & Veatch and started a joint venture between the two companies to service boiling water reactors.

The Oklahoma Corporation Commission has hired Richard L. Heck, a former U.S.

Nancy Schultz was promoted to engineering and construction services director at Transcontinental Gas Pipe Line Corp. She joined Transco in 1982.

Columbia Energy Services has hired Greg Davis at its Pittsburgh office. He previously worked for the Natural Gas Clearinghouse and Exxon Corp.

James S. Thomson has joined Consolidated Natural Gas Co. as president of its new subsidiary, CNG International Corp. He last worked at Edison International's Mission Energy Co.

Westinghouse Electric Corp. has promoted Randy H.