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U.S. Department of Energy
Office of Scientific and Technical Information

Wholesale service obligation of electric utilities

Journal Article · · Energy Law J.; (United States)
OSTI ID:6153814
The basic concepts of public utility status and utility regulation intertwine the obligation to provide service to the public as reasonably demanded with rate regulation and shielding from competitive interference. While a common law service obligation was not part of the Federal Power Act, the Federal Energy Regulatory Commission has taken the position that service, once commenced, may not be terminated without its approval. This view of Commission authority may not be supported by the legislative history of the Federal Power Act or by judicial precedent. The requirement to serve apart from recognition of a right to serve may result in increased rates in the near term and insufficient capacity, or both, in the long run. A review by the Commission and the courts is examining ways to introduce competition and shift risks from ratepayers to shareholders.
Research Organization:
Reid and Priest, Washington, DC
OSTI ID:
6153814
Journal Information:
Energy Law J.; (United States), Journal Name: Energy Law J.; (United States) Vol. 6:2; ISSN ELJOE
Country of Publication:
United States
Language:
English