Report of the Electricity Regulation Committee

Energy Law Journal, January 1, 2011 | Go to article overview

Report of the Electricity Regulation Committee


This report provides a summary of significant decisions, orders, and rules issued by the Federal Energy Regulatory Commission (FERC) in the electricity regulation area during calendar year 2010, as well as regional developments during that period. The Electricity Regulation Committee, which prepared this report, has a broad focus and overlapping jurisdiction with certain other EBA committees. As these other committees have a more targeted focus, we have generally deferred to them as to their respective areas, including transmission reliability and planning; wholesale market-based rates; demand side management/renewable energy; enforcement actions/audits; and court appeals.

I. RULEMAKINGS AND POLICY STATEMENTS

A. Order No. 697-D: Market Based Rates for Wholesale Sales of Electric Energy, Capacity, and Ancillary Services by Public Utilities

On March 18, 2010, the FERC issued Order No. 697-D, Market Based Rates for Wholesale Sales of Electric Energy, Capacity, and Ancillary Services by Public Utilities.1 Order No. 697-D granted rehearing and clarification of the FERC's determinations in Order No. 697-C.2 Specifically, Order No. 697-D clarified and revised the reporting obligations imposed pursuant to 18 C.F.R. § 35.42 of the FERC's regulations, requiring that entities with market-based rate (MBR) authority file a notice of change in status with the FERC on acquiring sites for new generation capacity development.3 Order No. 697-D also denied rehearing of requests regarding the provisions governing mitigated sales.4

The FERC first described its vertical market power analysis when granting MBR authority. In demonstrating a lack of vertical market power "through the affiliation, ownership or control of inputs to electric production," a seller must provide information on its sites for generation capacity development.5 In addition, the regulations required sellers with MBR authority to report to the Commission

any land it has acquired, taken a leasehold interest in, obtained an option to purchase or lease, or entered into an exclusivity or other arrangement to acquire for the purpose of developing a generation site and for which site control has not yet been demonstrated . . . during the prior three years (triggering event), and for which the potential number of megawatts that are reasonably commercially feasible on the land for new generation capacity development is equal to 100 megawatts or more.6

In Order No. 697-D, the FERC further clarified that "if no sites have been acquired during a quarter, then a seller should not file a report for that quarter."7

The FERC further stated that an MBR seller should submit a change in status notice only "if there is a change that may affect the conditions relied upon by the [FERC] since it initially granted the seller market-based rate authorization, or since the [FERC] accepted a seller's updated market power analysis."8 It also stated that it appreciated concerns regarding identifying potential development sites for thermal generation facilities and that reporting on sites where an entity has not demonstrated control over the past three years "could lead to a mistaken belief that [an entity] has more land under its control than is actually the case."9 Therefore, the FERC reconsidered the requirement in 18 C.F.R. § 35.42(e), and eliminated the previous reporting requirement.10 As a result, Order No. 697-D established that there is no obligation to report the acquisition of interests in sites where site control has not been demonstrated over the past three years.11 The FERC did, however, reserve the right to require additional information from sellers at any time, including due to "a concern that a particular seller may be acquiring land for the purpose of preventing new generation capacity from being developed on that land . . . ."12

Order No. 697-D also addressed the FERC's tariffrequirements stating "if the [s]eller wants to sell at the metered boundary of a mitigated balancing authority area at market-based rates, then neither it nor its affiliates can sell into that mitigated balancing authority area from the outside. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Report of the Electricity Regulation Committee
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.