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Restructuring at the Crossroads

Citation:

American Public Power Association, “Restructuring at the Crossroads.” In, 2004.
appa.restructuring.crossroads.1204.pdf603 KB

Abstract:

Excerpt from the Executive Summary:

It is time to take stock of the Federal Energy Regulatory Commission’s (“FERC”) electric restructuring policies. APPA believes substantial “mid-course corrections” to FERC’s policies are needed to fix existing Regional Transmission Organizations (“RTOs”) and to encourage non- RTO alternatives in those regions where RTOs are not likely to form.

To protect electric consumers, as the Federal Power Act (“FPA”) requires, FERC should reorient its policies to make sure electric consumers in fact— not just in economic theory—benefit from electric restructuring.

FERC should:

  •  Ensure appropriate investment in transmission and generation infrastructure;

  •  Recognize and respect regional industry differences and preferences;

  •  Encourage cost-effective and not overly complex regional solutions;

  •  Support rational long-term generation resource arrangements that are in turn supported by long-term transmission service provided at just and reasonable rates;

  •  Foster well-functioning wholesale electric markets; and

  •  Ensure that public utility sellers of power at market-based rates

    charge “just and reasonable” prices.

Last updated on 07/26/2021