Reforming transmission access policy

Journal Article · Wed Dec 01 00:00:00 EST 1993 · Fortnightly; (United States)

OSTI ID:7045974

Helliher, J T ^[1]

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1. Public Service Electric and Gas Co., Washington, DC (United States)

The Federal Regulatory Commission's (FERC's) issuance of a Notice of Technical Conference and Requests for Comments on transmission pricing raises the prospect that the FERC may revise one of the pillars of its transmission access policy. It is wholly appropriate that the FERC should revisit the major elements of the transmission access policy it has developed since 1988. Only one of the current members of the Commission participated in the development of that policy, Chair Elizabeth Moler. Moreover, Chair Moler has stated her lack of enthusiasm for the pricing policy established by the FERC in Penelec, and imposed in subsequent cases, and expressed a willingness to consider alternative transmission pricing schemes. However, the main reason the FERC should revisit its transmission access policy lies in the origins of that policy. Before enactment of the Energy Policy Act of 1992, the FERC lacked authority to order wheeling, which it believed posed an obstacle to its efforts to promote competition in wholesale power markets. Unable to order wheeling, the FERC established a policy designed to induce utilities to voluntarily provide open access by resorting to its broad discretion to approve mergers and set wholesale rates. The FERC pursued this policy goal with a determination and willingness to read the Federal Power Act in the broadest possible terms. The sweeping changes made by the Energy Policy Act meant the FERC no longer needed to entice utilities to provide transmission service, but could instead order wheeling. Thus, the bases of FERC electric transmission access policy must be thoroughly reevaluated, since the condition that drove its development no longer exists.

• OSTI ID: 7045974
• Journal Information: Fortnightly; (United States), Vol. 131:22
• Country of Publication: United States
• Language: English

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29 ENERGY PLANNING
POLICY AND ECONOMY
POWER TRANSMISSION
PRICING REGULATIONS
US FERC
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US ENERGY POLICY AND CONSERVATION ACT
LAWS
NATIONAL ORGANIZATIONS
REGULATIONS
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