FERC approvs NU/PSNH merger, again
At the end of January, the Federal Energy Regulatory Commission (FERC) voted unanimously to approve a rehearing order granting the merger of Northeast Utilities Service Company (NU) and bankrupt Public Service Company of New Hampshire (PSNH). Approval for the merger was initially granted last August, and created quite a furor when, in an attempt to mitigate the merger's anti-competitive effects, FERC required NU to throw open its transmission network to thirdparty wheeling requests. The catch, however, was that third-party firm service would take priority over NU's native-load nonfirm service if the transmission system ever became too constrained to accommodate all power needs simultaneously. The revised order keeps this provision, but FERC reiterates that under no circumstances will NU be required to provide firm wheeling service out of existing transmission capacity where doing so would impair or degrade reliability of service to native-load customers (emphasis in original). The revised order also provides an opportunity for NU to charge lost opportunity costs for wheeling firm power when transmission of that power due to system constraints causes NU to forego economy purchases or off-system sales. Rather than setting out any specific rules or pricing policies for NU to follow, however, FERC instructed NU to submit its own pricing policy based on a series of guidelines drawn up by the commission.
- OSTI ID:
- 7109595
- Journal Information:
- Fortnightly; (United States), Journal Name: Fortnightly; (United States) Vol. 129:5; ISSN FRTNE8
- Country of Publication:
- United States
- Language:
- English
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