Efficiency and the public interest: QF transmission and the Energy Policy Act of 1992. [QF (Qualifying Facilities)]
Prior to the enactment of the Energy Policy Act of 1992 (Act), most Federal Energy Regulatory Commission (FERC or Commission) deliberations involving transmission services did not occur in transmission rate or service proceedings per se. The Commission conducted a number of general inquiries or studies of the subject, including setting the terms and conditions of transmission services as part of merger proceedings and [open quotes]market-based[close quotes] pricing proceedings. With the passage of the Act, the FERC is likely to be asked to confront the advisability of requiring transmission services in a more direct manner. The Act permits [open quotes][a]ny electric utility, Federal power marketing agency, or any other person generating electrical energy for sale for resale[close quotes] to petition the Commission for a wheeling order. The FERC may order wheeling in accordance with section 212 of the Federal Power Act (FPA) and a finding that such wheeling would [open quotes]otherwise be in the public interest.[close quotes] When compounded with the need to find that wheeling is in the public interest, the requirements set forth in section 212 are considerable. This article focuses on an important area of section 212 criteria, namely the interplay between between the public interest and economic efficiency criteria in the case of Public Utility Regulatory Policies Act of 1978 (PURPA) Qualifying Facilities (QF). Two recent proceedings in which the FERC considered the need to provide power transmission service guarantees for QFs are analyzed from the standpoint of public and private economic welfare. The two proceedings are the merger of Utah Power Light Company, PacifiCorp, PC/UP L Merging Corporation (Utah) and the Western Systems Power Pool application (WSPP).
- OSTI ID:
- 6353676
- Journal Information:
- Energy Law Journal; (United States), Journal Name: Energy Law Journal; (United States) Vol. 14:1; ISSN 0270-9163; ISSN ELJOEA
- Country of Publication:
- United States
- Language:
- English
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290201 -- Energy Planning & Policy-- Economics-- (1992-)
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296000 -- Energy Planning & Policy-- Electric Power
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