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Participation In Interstate Legal Processes Federal vs. State Authority. August 10, 2005 Brazilia, Brazil. U.S Two-Tiered Regulation. Regulatory authority over investor owned utilities is divided between the FERC and the State Regulatory Commissions. What Does FERC Regulate?.

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participation in interstate legal processes federal vs state authority

Participation In Interstate Legal ProcessesFederal vs. State Authority

August 10, 2005

Brazilia, Brazil

u s two tiered regulation
U.S Two-Tiered Regulation
  • Regulatory authority over investor owned utilities is divided between the FERC and the State Regulatory Commissions.

Interstate Legal Processes

what does ferc regulate
What Does FERC Regulate?
  • Electric Power Industry
    • Interstate transmission rates and services
    • Wholesale energy rates and services
    • Corporate transactions, mergers, securities issued by public utilities

Interstate Legal Processes

what the state public utility commissions pucs regulate
What the State Public Utility Commissions (PUCs) Regulate
  • Establish retailfranchise areas
  • Develop and enforce retailservice quality standards
  • Review and approve retail rates andtariffs
  • Monitor and approve planningof the transmission system and generation facilities
  • Approve constructionof non-hydro generation and transmission facilities

Interstate Legal Processes

what ferc does not regulate
What FERC Does Not Regulate
  • Plan or finance investments
  • Set electric reliability standards (North American Electric Reliability Council)
  • Regulate pollution produced by electric generators (Environmental Protection Agency)
  • Regulate safety standards of nuclear generation (Nuclear Regulatory Commission)

Interstate Legal Processes

electric restructuring in the u s
Electric Restructuring in the U.S.
  • Pre 1996 - Electric industry
    • Services were combined (bundled)
    • One utility served entire franchise area
  • Major Orders issued by FERC
    • Order No. 888 (1996)
    • Order No. 2000 (1999)

Interstate Legal Processes

electric restructuring in the u s1
Electric Restructuring in the U.S.
  • Some states resist opening their markets up
    • Nothing to be gained
    • May drive local prices up

Interstate Legal Processes

another example of federal state conflict
Another Example of Federal/State Conflict
  • Requests for Proposals (RFP)
    • States interested in reliable service at a low price
    • FERC concerned that the RFP process is run in a fair, non-discriminatory fashion.

Interstate Legal Processes

new chairman at ferc
New Chairman at FERC
  • Joseph T. Kelliher
    • Has pledged to work closely with the states
    • Have to wait to see if policies change

Interstate Legal Processes

thank you for your attention
Thank you for your attention !
  • Dennis H. Melvin, Esq.
          • Federal Energy Regulatory Commission
          • 888 First Street, NE
          • Washington, DC 20426
          • (202) 502-8042 : Phone
          • (202) 208-0118 : FAX
          • dennis.melvin@ferc.gov

Interstate Legal Processes