Preemptory effect of an FERC rate approval

Journal Article · Thu Aug 16 04:00:00 EDT 1984 · Public Util. Fortn.; (United States)

OSTI ID:6773672

Pietrantonio, T

What authority do state regulatory commissions possess to review the reasonableness of wholesale rates approved by the Federal Energy Regulatory Commission for the interstate sale of power. Until recently most courts were of the opinion that, subsequent to an FERC determination, state commissions were automatically precluded from questioning the propriety of such rates under the principle of federal preemption. Recently the commonwealth court for the state of Pennsylvania declared that the state commission would not violate the doctrine of federal preemption by preserving for itself the right to investigate (in a retail rate case) the prudency of management of a utility company in purchasing its power at the FERC-approved rates. According to the court, the state commission could penalize the company for an abuse of discretion by refusing to pass through its costs of purchasing power at such wholesale rates in charges to its retail customers. The issue presented is whether the apparent conflict may be attributed to variations in statutory law or whether the Pennsylvania court is indeed in error in establishing a policy that second-guesses the FERC.

• OSTI ID: 6773672
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 114:4; 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
ELECTRIC POWER
ELECTRIC UTILITIES
FEDERAL REGION III
NATIONAL ORGANIZATIONS
NORTH AMERICA
PENNSYLVANIA
POWER
PRICING REGULATIONS
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS
US DOE
US FERC
US ORGANIZATIONS
USA