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PARTICIPATION IN INTERSTATE LEGAL PROCESSES-A State Perspective

PARTICIPATION IN INTERSTATE LEGAL PROCESSES-A State Perspective. Ted Boyer Commissioner, Utah Public Service Commission. State Jurisdiction. State Jurisdiction: Those areas mentioned by Dennis Additional state authority: approve mergers of utility companies;

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PARTICIPATION IN INTERSTATE LEGAL PROCESSES-A State Perspective

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  1. PARTICIPATION IN INTERSTATE LEGAL PROCESSES-A State Perspective Ted Boyer Commissioner, Utah Public Service Commission

  2. State Jurisdiction • State Jurisdiction: Those areas mentioned by Dennis • Additional state authority: approve mergers of utility companies; approve issuance of securities; review transactions with unregulated affiliates; arbitrate disputes among utilities or between utilities and customers

  3. Possible areas of conflict between FERC and the states Electric restructuring-a grand experiment: Early results of electricity deregulation:

  4. Utah reluctance to restructure Viewed it as a grand experiment Would the market system provide appropriate safeguards? Utah adopted a “wait and see” attitude Utah already had low utility rates Fear that Utah rates would increase in a deregulated environment

  5. New Generation Resources-Another possible source of conflict State focus: Safe reliable, adequate and reasonably priced utility service FERC focus: Fair and non-discriminatory Additional state focus: Reduce risk (fuel costs, performance, etc)

  6. Utah Approach to RFP Process Energy Resource Procurement Act (2005) Requirements: Advantages of Utah Process:

  7. Utilities Serving Several Statesanother potential area of conflict Challenges for utilities: Different regulatory schemes Different commissioners Different cultures Different resources Different environmental goals

  8. Case Study Utah Power & Light The Problem The Solution The Result

  9. State Regulatory Associationan example of inter-state cooperation NARUC-National Association of Regulatory Utility Commissioners Members consist of commissioners and staff members Meet periodically (several times per year) Industry updates Federal participation (FERC, FCC) International members welcomed

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