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Understand the division of regulatory authority between the Federal Energy Regulatory Commission (FERC) and State Regulatory Commissions in interstate legal processes. Learn what FERC regulates, what the State Public Utility Commissions (PUCs) regulate, and what FERC does not regulate. Explore the impact of electric restructuring in the US and the challenges in maintaining a fair and non-discriminatory RFP process. Stay informed about the new Chairman at FERC and potential policy changes. Contact Dennis H. Melvin, Esq. at FERC for more information.
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Participation In Interstate Legal ProcessesFederal 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. Interstate Legal Processes
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 • 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 • 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. • 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.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 • 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 • 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 ! • 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