Tightens postings rules for transmission discounts; expands jurisdiction on stranded costs in municipal annexations.
The Federal Energy Regulatory Commission on Feb. 26 revisited its Order 888 open-access transmission decision, reaffirming its core framework but making changes by granting rehearing on two key issues.
Stranded-cost recovery associated with municipal annexation was revisited. In addition, the FERC updated the discounting of transmission services (See, Order 888-A, Docket Nos. RM95-8-001, RM94-7-001, and RM95-9-001). The FERC also reaffirmed Order 889, the Open Access Same-Time Information System (OASIS) decision, with minor changes.
Transmission Discounts
In the original open-access order, the FERC had allowed differing rules depending on who was offered the discount by the transmission provider. Different rules applied for discounts offered to independent third parties, versus discounts that the transmission owner might offer to its own division, facilities or affiliates. On rehearing, the FERC made three changes to the discounting requirements. The changes enhance the identification of discriminatory discounting practices, while providing greater discount flexibility. Two of those changes apply to OASIS: 1) Discounts now must be made only over OASIS; and 2) Details of the discounts (price, delivery/receipt points, and service length) must immediately be posted on OASIS.