Competitive electric market is hearing subject

Journal Article · Thu Apr 15 04:00:00 EDT 1993 · Public Utilities Fortnightly; (United States)

OSTI ID:6795781

Burkhart, L A

On March 4, the House Subcommittee on Energy and Power, chaired by Philip Sharp (D-IN), held an oversight hearing on electric deregulation under the Energy Policy Act of 1992. The hearing featured testimony from the five members of the Federal Energy Regulatory Commission (FERC) on transmission access and pricing, as well as on exempt wholesale generators (EWGs). According to acting FERC Chair Elizabeth Moler, the Act requires the FERC to complete two rules by October 24, 1993. The rule determining EWG status under PUHCA (Order 550) was issued February 10. As of March 3, the FERC had received 31 applications under the new rule. The FERC must also promulgate a rule under 213(b) of the Federal Power Act (FPA) requiring utilities to submit annual information to inform potential transmission customers, state regulatory authorities, and the public about potentially available transmission capacity and known constraints. The FERC currently is considering whether to implement FPA 211 and 212 on a generic or case-by-case basis, Moler said. In the meantime, the FERC has received its first application, from Tex-La Electric Cooperative, seeking 211 transmission service from Texas Utilities. Moler said that whether transmission is order under 211, a condition under 203, or voluntary under 205, the Commission must develop a sensible, coherent, comprehensive approach to addressing access and pricing issues. She addressed the and/or pricing debate, referring to recent decisions in which the FERC has allowed a utility to recover the higher of embedded or incremental rates, but not both. The FERC will examine future transmission-rate design issues such as distance-sensitive rates and pricing parallel flows. Moler predicted that the and/or debate would become insignificant with the evolution of more fundamental pricing changes needed for a competitive electric industry.

• OSTI ID: 6795781
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:8; ISSN PUFNAV; ISSN 0033-3808
• 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
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ELECTRIC UTILITIES
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PUBLIC INFORMATION
PUBLIC UTILITIES
REGULATIONS
RESELLERS
US DOE
US ENERGY POLICY AND CONSERVATION ACT
US FERC
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