The Federal Energy Regulatory Commission (FERC) has approved a series of orders clarifying that it will not deny or revoke market-based, wholesale electric rates for utilities or their marketing affiliates without first allowing them to correct defects in their open-access transmission tariffs (Docket Nos. ER94-1045-000 et al., Feb. 14, 1996).

Utilities with existing market-based rates (or affiliates with such rates) will have 15 days to refine their open-access tariffs after the FERC identifies a problem (em only then will market-based rates be revoked. Parties seeking market-based rates for the first time also will be given 15 days to revise their tariffs if a problem is found.

The FERC on its own initiative reconsidered its position in five particular cases, signaling that it would be flexible when such problems arise. The orders involve: Kansas City Power & Light Co.; PacifiCorp Power Marketing, Inc.; Western Resources, Inc.; Westar Electric Marketing, Inc.; UtiliCorp United, Inc.; Aquila Power Corp.; Northeast Utilities Service Co.; and Northern States Power Co.

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