''Conway'' price-squeeze issue

Journal Article · Thu Mar 30 04:00:00 EST 1978 · Public Util. Fortn.; (United States)

OSTI ID:5020760

Weiss, J L

Prior to June 7, 1976, it was the view of the Federal Power Commission, expressed in a number of decisions and orders that, since it lacked jurisdiction to set retail rates, it would not consider allegations of discrimination between wholesale jurisdictional rates and retail nonjurisdictional rates. This alleged discrimination is commonly known as the ''price-squeeze'' issue. In one particular case, involving a rate increase application filed by the Arkansas Power and Light Company, the commission refused to allow the wholesale customers of the company to present evidence of an alleged price squeeze. As a result of this decision, the wholesale customers took their appeal to the court. In a decision handed down by the District of Columbia court of appeals in Conway Corp. et al. v Federal Power Commission (CA DC 1975) 167 US App DC 43, 510 F2d 1264, the court ruled that the commission has the jurisdiction to review and correct price-squeeze situations by setting wholesale rates of an electric utility within a zone of reasonableness to avoid curbing the retail competition of its wholesale customers. However, because the case was decided principally on jurisdictional grounds, the courts did not completely address all of the elements of a claim of price squeeze or the nature of all forms of relief which the commission can afford the complainants. The courts did not focus on other regulatory tools available to eliminate discrimination, such as by regulating rate design and rate form.

• OSTI ID: 5020760
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 101:7; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
296000* -- Energy Planning & Policy-- Electric Power
COMPETITION
DECISION MAKING
ELECTRIC POWER
ELECTRIC UTILITIES
FEDERAL POWER COMMISSION
GOVERNMENT POLICIES
LEGAL ASPECTS
NATIONAL ORGANIZATIONS
POWER
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS
STATE GOVERNMENT
US ORGANIZATIONS