Wisconsin PSC

Minn. PUC Delays Primergy Vote

The Minnesota Public Utilities Commission has said it will postpone a decision for two months on whether to approve the proposed merger of Northern States Power Co. and Wisconsin Energy Corp. to form "Primergy."

The PUC may not decide the matter until as late as August. A sunset clause kicks in just three months after that time, which would allow the utilities to back out of the deal.

"Primergy" Merger in Limbo

Milwaukee County District Attorney E. Michael McCann has been appointed to investigate allegations that Wisconsin PSC member Dan Eastman acted improperly by talking with Wisconsin Energy Chairman Richard Abdoo and others about the proposed "Primergy" merger between WE and Northern States Power Co., prompting sources to speculate that too many delays could kill the merger.

The Minnesota PUC reportedly is also investigating ex parte allegations, but Minnesota DPU Administrative Law Judge Allan Klein has ruled that the merger would not be harmful or anti-competitive.

Frontlines

You've heard talk lately about the convergence of electricity and natural gas. That idea has grown as commodity markets have matured for gas and emerged for bulk power.

But some economists take a different view. They see the real convergence occurring between electricity and telecommunications. I'm not talking about the "smart house" or fiber-to-the-whatever. Instead, how is the product is created?

Frontlines

Suppose you want to reduce emissions

of carbon dioxide to lessen the chance

of global warming. Should you (a) prohibit coal burning in electric power plants, (b) encourage coal use for power generation, or (c) force electric generators to pay an "externality" surcharge to reflect the cost of CO2 emissions?Here's another one. You are an independent power producer.

Electric Industry Restructuring: The States Forge Ahead

About 30 states have begun (em

either through the legislature, the utility commission, informal working groups, or some combination of these (em to consider issues such as retail wheeling, unbundled utility structures, and alternative rate regulation.1 California's "Blue Book" hearings have drawn the most attention, but significant efforts are also underway elsewhere. Although each state is approaching the issue in its own way, successful industry restructuring will ultimately require coordination across state lines.

"Merger of Equals" Primes NSP, WEPCO for Competition

Northern States Power Co. (NSP) and Wisconsin Energy Corp. (parent company of Wisconsin Electric Power Co., WEPCO, and Wisconsin Natural Gas Co.), have announced plans to merge, a move NSP says will create the tenth-largest investor-owned utility in the United States, based on market capitalization. The new company (em Primergy Corp. (em would operate as a registered public utility holding company and parent company of NSP and WEPCO, with the gas subsidiary perhaps spun off to comply with the Holding Company Act.

Wisconsin "Comparable" Network Service Moves to FERC

The Federal Energy Regulatory Commission (FERC) has reviewed network transmission tariffs filed by Wisconsin Public Service Corp. (WPS) and Wisconsin Electric Power Co. (WEPCO) in compliance with a Wisconsin Public Service Commission (PSC) order requiring a FERC tariff that provides network service comparable to the service the utilities reserve for themselves. The case arose out of applications filed at the PSC by four utilities in late 1990 and early 1991.

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.