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About The Battalion. (College Station, Tex.) 1893-current | View Entire Issue (May 7, 1982)
state Battalion/Page 5 May 7, 1982 1 LIVES, Jtility companies igging into mines, :onsumers’ pockets illnited Press International UBBOCK — Utility corn- buying coal mines for 1 sources of raw energy are jting revenues each month Bjcharges passed on to the e Kmer under the fuel adjust- Bclause, a researcher con- ids. Khough buying coal mines Belling unregulated coal to Inselves makes good econo- Bnse for utilities, the prac- Iprovides room for abuses Bgh this automatic adjust- ;nt clause, said Texas Tech wa y 1! diversity economics professor nia and L es £ j 0 nish. “Utilities in many cases have vas intro(i« iasec j m i nes w ith good in- nzyme u t i ons — finding a good, con- man p' Jjqus supply of energy,” Jon- '• Bid. “This motive has been ^ble. But there is also the Inent that this allows com- andad inks to avoid constraints on the bodv.ljate utilities can claim.” IrugAdi With the fuel adjustment approved l U se i n place and the fact that gener tore utilities own their own un- !one bj I jgulated raw fuel supplies, Jon- jices of fl-said some utilities are cir- ■deral p jmventing the electric rate reg- i anotherfetions imposed by state utility mmissions. ter 18 one regulated sector of the i secun ;onomy merges with an unreg- the comli|ted sector, we need a single seand: ,^$0 profits will not be trans survival Bd to the unregulated sec- s not new manyyi tors,” he said. “In most states right now, there is a policy vacuum on this issue.” Fuel adjustment clauses be came common soon after the 1973 Arab oil embargo, which changed the world’s energy pricing structure. The clause permits electric companies to pass on the cost of raw fuel dire ctly to the consumer. After the Arab embargo, ab out three-fourths of the nation’s 50 state utility commissions adopted fuel adjustment clauses. In his study, Jonish sent in quiries to utility commissions in all 50 states. Of the 40 states that responded, only eight had pro visions regarding fuel cost ad justments for any utility that owned raw energy supplies. Jonish said a possible solution to abuses of the fuel adjustment clause would be to require that the market price be used for raw fuel sold within the corporate structure. “Otherwise, a company has no proper incentive to improve operation efficiency because the cost of inefficiencies can be pas sed on the the consumer,” he said. Under such a rule, utility commissions would require that companies buy coal from them selves at market prices. “Enforcing this is just a matter of looking at invoices and mak- an Tornado strikes ^Dayton homes; others sighted dent of Center, iftheaiw al plppM United Press International blican PswBERT Y — A tornado an extraofth briefly touched down v presiJpday in a rural area slightly at all [ paged two homes, but resi- it come»ts in Dayton feared more )’HairsBage would come from two ill have : ® r tornados they saw lurking endmenij the clouds. ' too ha ; Bill Buchanan, manager of : If#, il of reli| againsi itting d descri ry praye ntarypn jiiiredl)'' ool then; ing pc® what e« Hair saif TTlSlOlt Announcing: Hair Designs Janet Wiltsie r ^ rj i ik yr of Courtea Becky Moore also Tom Chateau Phone 846-8528 303 College Main (Down from Loupots next to White’s Auto) mi: LAST BIG WEEKEND! In Honor of All Texas A&M’s Graduating Seniors and The Mothers Who Made Them Possible... Open Mon.-Sat. 9 a.m.-Till lllllliill OF! Everything in Hie Store! Thursday, Friday, Saturday Only! Rajndy’S Liquor 524 E. University Drive 696-1351 ing adjustments for BTU (Brit ish Thermal Unit) content and transportation differences,” Jonish said. “The rule would be easy to administer and would eliminate many pos sible abuses of the fuel adjust ment clause.” By 1985, the Department of Energy predicts that 36 percent of the utilities’ raw energy needs will be provided by utility- owned coal mines. Clements’ task force report asks for increased tuition United Press International AUSTIN — Gov. Bill Cle ments Thursday received the final report of his task force on education, but reserved comment on the controversial recommendations that tuition , at colleges and universities, in cluding Texas A&M Universi ty, be doubled and eventually quadrupled, and that colleges and universities outside the Texas A&M and University of Texas systems be realigned on a geographical basis. The 30-member task force said tuition rates for Texas re sidents in public colleges and universities are among the lowest in the nation and cover only 4 percent of the educa tional cost for a full-time stu dent. The task force recom mended the Legislature dou ble the tuition rate when it meets in 1983, then provide for an annual increase until tuition has quadrupled over the current rate of $4 a semes ter hour. The task force also said that by placing the schools into four regional districts, a sub stantial number of governing boards could be reduced as well as duplication in course offerings. UT and Texas A&M would retain a statewide focus under the recommendation. The report also calls for an increase in teacher’s salaries to keep them ahead of inflation and near or above the national average for educators. hitach 2S 'mw [ B Hitachi] HITACHI Sm *350 bedroom or J-2 system stands 12-inches high and0i 25-wpc amp, sterdo tuner with digital readoui, speakers, and metal cassette. 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