Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

The FERC: Designated driver and head herdsman for electric industry restructuring

Journal Article · · Electricity Journal; (United States)
 [1]
  1. Michigan State Univ., East Lansing, MI (United States)

The Energy Policy Act is but the latest example of legislature promoting change in industry structure without accompanying change in the regulatory structure. Nonetheless, there is much that the Federal Energy Regulatory Commission can and must do, especially in the area of transmission access and pricing. The Energy Policy Act of 1992 reinforces many initiatives of the FERC of the last eight or so years. In particular, it grants to the FERC authority to order transmission-owning utilities (TOUs) to provide transmission services to other utilities and to two categories of quasi-utilities - [open quotes]exempt wholesale generators[close quotes] (EWGs) and [open quotes]qualified facilities[close quotes] (QFs). These quasi-utility generators, which may be affiliates of traditional investor-owned utilities (IOUs), can, with little distortion, be called non-regulated generators. In effect, the Energy Policy Act laid the legal groundwork for the evolution of a non-regulated, competitive electric generating industry. It did not, however, change the allocation of regulatory responsibilities for building and operating transmission networks. The new electric industry is to be guided into existence by the old regulatory system. The key player in this [open quotes]old regulatory system[close quotes] is the FERC. The complexity of the FERC's task depends in large part on the role the Department of Energy chooses to play. Vigorous leadership by the DOE could simplify the FERC's task remarkably.

OSTI ID:
5674152
Journal Information:
Electricity Journal; (United States), Journal Name: Electricity Journal; (United States) Vol. 6:5; ISSN ELEJE4; ISSN 1040-6190
Country of Publication:
United States
Language:
English