Middle South Utilities Inc said theFederal Energy Regulatory Commission has requested a 30-day
stay of a U.S. Court of Appeals ruling ordering the commission
to reconsider its allocation of costs from the Grand Gulf One
nuclear power plant.
    More than two years ago, FERC set the allocation af Grand
Gulf capacity and costs among the four Middle South operating
companies. These allocations, in turn, have become the basis
for contested rate filings the four operating utilities made to
regulators in their service areas.
    In a ruling dated June 24 and distributed June 26, the U.S.
Court of Appeals in Washington reversed its January 1987
decision and ordered FERC to explain its criteria for
determining undue discrimination and why the FERC's allocation
currently in effect is not unduly discriminatory under that
definition, Middle South said.
    The company said the ruling by the three-judge appeals
court panel "was totally unexpected, especially in light of the
timetable the full 11-member court set in April of this year
when it announced that all judges would rehear the panel's
January decision in which the panel had upheld FERC.
    In essence, Middle South said, "the three-member panel has
adopted the dissenting opinion as the new majority opinion, and
the full court has accepted the new decision."
    The company said it supports FERC's motion for a stay. The
commission said it needed the time to determine the appropriate
course it should take in light of the new court decision.
    "Given its complexity and the need for clarification by the
FERC, the significance of this latest order will take time to
determine," Middle South said in a statement.
 Reuter
