Restructuring the electric industry
Open access, competition, stranded costs and industry restructuring: these are the regulatory changes now being proposed for the electric industry by the Federal Energy Regulatory Commission (FERC) and state public utility commissions. Regulators at both the state and federal level are looking to create an industry structure that harnesses competitive market forces, increasing customer choice and improves the efficiency of electricity markets, thereby reducing consumers` electricity rates. FERC Order 636 includes four elements: universal open access for wholesale power-transmission facilities and services; cost recovery for utility assets stranded as a result of open access; criteria used to delineate those facilities where FERC has jurisdiction and where state regulatory authorities have jurisdiction; and a notice to explore and develop an electronic real-time information network to facilitate market and transaction information involving transmission capacity. The proposed rule directly affects only ``wholesale`` transactions, that is, transactions where the purchaser of the electricity is not the ultimate end-use consumer. Whether and to what extent ``retail wheeling`` is pursued is an issue that each state will decide. The paper discusses the FERC approach.
- OSTI ID:
- 70008
- Journal Information:
- American Gas, Journal Name: American Gas Journal Issue: 5 Vol. 77; ISSN AMGLEH; ISSN 1043-0652
- Country of Publication:
- United States
- Language:
- English
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