EWGs: On track with EPAct
- Reid Priest, Washington, DC (United States)
Over one year ago, the US Congress enacted the Energy Policy Act of 1992 (EPAct). This action served as the catalyst for restructuring and changing the function of every segment of the power generation industry. Before EPAct, many qualifying facilities (QFs) were captive to crucial steam hosts that used their unique bargaining position to great advantage in negotiating steam agreements that supported cogeneration project development. In addition, companies seeking to develop projects outside the United States were stymied by the onerous and often complex process of obtaining exemption from the US Securities Exchange Commission (SEC) for negotiation under the Public Utility Holding Company Act (PUHCA). EPAct created a new class of power producers and facilities, known as exempt wholesale generators (EWGs), which own or operate eligible facilities under EPAct. EWGs in the United States and elsewhere are exempt from regulation under PUHCA and eligible facilities are not regulated as traditional utility plants. Both the SEC and the Federal Energy Regulatory Commission (FERC) were given the mandate to promulgate and issue EWG regulations in 1993. Provisions of EPAct also provide a unique allocation of concurrent jurisdiction among FERC, the SEC, and state regulatory agencies. The management of this shared jurisdiction is a critical element of EPAct and is still evolving. The SEC appears to be exercising great deference to FERC in implementation of the EWG program. Moreover, because of the requirements in Section 32 (i), known as the anti-PUHCA pretzel provision,' the SEC has generally determined that it will no longer need to issue no-action letters on matters related to EWG development. To date, the SEC staff has concentrated on registered holding company ownership of eligible facilities. The staff gave one no-action letter to an operator of an eligible facility in early 1993. Since then, however, FERC regulations and orders have addressed the EWG operator issue.
- OSTI ID:
- 7022550
- Journal Information:
- Independent Energy; (United States), Vol. 24:3; ISSN 1043-7320
- Country of Publication:
- United States
- Language:
- English
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ELECTRIC POWER
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NATIONAL GOVERNMENT
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