Seeking greater transparency and consistency, the Federal Energy Regulatory Commission has issued a Notice of Proposed Rulemaking (NOPR) to revise accounting regulations for treatment of the retirement of tangible long-lived assets. The rule would provide a specific method of accounting for costs incurred in the retirement and removal of assets such as pipelines, power plants, buildings, etc., where there is a legal obligation to decommission and/or remove them. The NOPR would add new balance sheet and income statement accounts to the Uniform Systems of Accounts and revise the Commission’s annual report forms (1, 1-F, 2, 2-A, 6) to include the new accounts and revised schedules. The proposed effective date of the rule would be Jan. 1, 2003.

The North Carolina Utilities Commission (NCUC) and the Public Service Commission of South Carolina (PSCSC) issued orders approving rate increases for Piedmont Natural Gas totaling $22.2 million effective Nov. 1. The orders include new rates designed to improve the company’s recovery of its distribution costs and a rate structure that more properly aligns rates with its seasonal costs of serving customer classes. The NCUC order is designed to give the company the opportunity to increase its annual revenues by $13.8 million in North Carolina. The PSCSC order is designed to give the company the opportunity to increase its annual revenues by $8.4 million in South Carolina. Piedmont delivers gas to 725,000 residential, commercial and industrial customers in North Carolina, South Carolina and Tennessee.

Avista Corp. posted a smaller loss of $2.2 million, or 5 cents/share during the third quarter, which compared with a loss of $32.9 million, or 69 cents/share in 3Q2001 and its results were in line with Wall Street expectations. Avista’s year-to-date consolidated revenues were $715.2 million and net income was $18 million, or $0.38 per diluted share, compared to revenues of $1.08 billion and net income of $18 million, or $0.38 per diluted share, for the same period a year ago. Year-to-date 2002 revenues were lower primarily due to reduced revenues at Avista Utilities, mainly because of decreased wholesale electric sales, which were partially offset by increased retail sales. Avista Utilities’ overall gross margins increased during 2002. Revenues from Avista Energy were also lower due to decreased energy commodity prices and reduced market volatility. “We are making progress toward restoring the company’s overall financial health,” said CEO Gary G. Ely. “We continue to aggressively manage costs that are within our control, with capital expenditures and operating and maintenance expenses remaining under budget for the year. We are, however, experiencing significant increases in pension and insurance expenses, which affected our earnings this quarter.”

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