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Participation In Interstate Legal Processes Federal vs. State Authority

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

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  1. Participation In Interstate Legal ProcessesFederal vs. State Authority August 10, 2005 Brazilia, Brazil

  2. U.S Two-Tiered Regulation • Regulatory authority over investor owned utilities is divided between the FERC and the State Regulatory Commissions. Interstate Legal Processes

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. 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

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