Public

The New York Public Service Commission (PSC) approved New YorkState Electric and Gas Co.’s (NYSEG) sale of all of itsfossil-fueled generation plants to AES NY Inc. and Mission EnergyWestside Inc. The $1.85 billion sale furthers the commission goalof encouraging utility divestiture of generation facilities as onestep in the process of introducing competition to New York’selectric industry. NYSEG is the first utility in the state toreceive commission approval for the sale of generation facilities.

Unocal Global Trade said it signed a 10-year gas sales agreementto supply 72 Bcf of gas to the Public Energy Authority of KentuckyTrust (PEAK), a Kentucky municipal joint action agency. PEAK hasagreed to make a nonrefundable advance payment of $120 million onJan. 1, 1999 and pay a fixed monthly reservation fee over the lifeof the contract. The deal with Unocal follows a similar transactionPEAK negotiated with Marathon for supply this winter.

Unocal Global Trade said it signed a 10-year gas sales agreementto supply 72 Bcf of gas to the Public Energy Authority of KentuckyTrust (PEAK), a Kentucky municipal joint action agency. PEAK hasagreed to make a nonrefundable advance payment of $120 million onJan. 1, 1999 and pay a fixed monthly reservation fee over the lifeof the contract.

Gas marketers said last week a preliminary unbundling ruling bythe Connecticut Department of Public Utility Control (DPUC) allowsthe state’s local distribution utilities to erect “insurmountablebarriers to entry” into the retail gas market and will snuff outwhat little competition exists today.

Florida Power Corp. filed plans with the Florida Public ServiceCommission to accelerate the building of a second generation unitat its Hines Energy Complex in Polk County. The unit will provideadditional capability to meet growing demand for electricity wellinto the next century. The company has offered to absorbconstruction costs for the plant in its current customer rates.

The New York State Public Service Commission approved a rateplan yesterday for National Fuel Gas Distribution that will cut itsresidential and commercial rates by $20.4 million in two phasesover the next two years. Not only will customers enjoy lower rates,but the company will have to attain specific service qualitytargets for its customers or face penalties, said PSC ChairmanMaureen O. Helmer.

The Connecticut retail gas market “will quickly turn into nomarket at all” if the state Department of Public Utility Control(DPUC) approves the August unbundling tariff filings made by thestate’s three local distribution companies, retail gas marketerssaid last week in a joint brief. The DPUC is expected to issue afirst phase unbundling order later this week that will address theissues presented by the marketers.

The Georgia Public Service Commission concluded Atlanta GasLight Co.’s historic rate case, opening its statewide gasdistribution system to marketers. The PSC approved a customereducation program for one year and procedures for Atlanta Gas Lightto follow when sharing information with gas marketers about thecompany’s nearly 1.5 million customers. The PSC also orderedAtlanta Gas Light to cut rates by $6 million. The reduction is inaddition to a $7 million rate cut ordered in June.

Retail gas competition in the state of New York clearly needs ajump start, and the New York Public Service Commission (PSC) gaveit one yesterday. The PSC announced it will force the state’s localdistribution companies to cease selling gas within three to sevenyears.