Elimination of the utility must-purchase obligation can lead to unanticipated consequences.
The Energy Policy Act of 2005 adds a new section of the Public Utility Regulatory Policies Act (PURPA) of 1978. Section 210(m) of PURPA now provides for the termination of an electric utility’s obligation to purchase energy and capacity from qualifying cogeneration facilities if FERC finds certain conditions are met.
How greenhouse gases and Best Available Control Technology could shape the regulatory landscape—and the environment.
Jonathan S. Martel, Jessica R. Brody, and Kerri L. Stelcen
Two cases involving traditional pollutants and climate change are before the court. In addition to questions about the EPA’s regulatory power, both cases raise critical threshold “jurisdictional” questions about the courts’ role in addressing these issues.
Policymakers are setting sights on new challenges facing utilities.
Utilities in the United States are heading into uncharted territories, and the regulatory landscape is changing accordingly. To learn what it takes to tame this new territory, we spoke with three FERC commissioners, a state regulator, and a Western governor.
Progress has been made, but much work remains along the path to ERO completion.
FERC demonstrated strong leadership in meeting the aggressive timeline set by Congress for establishing the regulatory basis on which the Electric Reliability Organization will be created. But next summer’s peak-demand season is fast approaching. And much more work remains ahead for the industry to finish the job.
Mixed signals leave developers wary of building new infrastructure.
Richard Stavros, Executive Editor
FERC Chairman Joseph Kelliher gives mixed signals that leave developers wary of committing to investments in new infrastructure, given his clear desire to affect positive change, while appearing to argue for policy decisions that are politically safe but arguably inconsistent.
Critics say its new budget and business plan could simply duplicate the work of RTOs.
FERC granted formal certification to NERC as the nation’s sole ERO and reliability czar, making it inevitable that NERC would delegate the job of regional enforcement to its various regional reliability councils, already constituted. To understand why FERC acted as it did, turn back the clock nearly a decade.
FERC lowers the bar for obtaining market- based rates for natural-gas storage.
Kenneth S. Culotta and James E. Goddard
The first regulatory changes following the passage of the Energy Policy Act of 2005 (EPACT) are starting to pick up steam—and encountering multi-faceted criticism—as the gas industry reacts.
Do you know what your legal exposure is?
James E. Bowers Esq. and David Doot
Enron has provided lessons for both corporations generally as well as the energy industry specifically. How can energy market participants effectively manage the risks inherent in complying with those regulatory reforms?
What federal regulators should do to ensure security, reliability, and cleaner air in our nation’s capital.
Sheila Hollis and Ilia Levitine
The District of Columbia Public Service Commission successfully has used two little known provisions in the Federal Power Act (FPA) to prevent an aging generating plant crucial to the national capital region’s reliability from being abruptly shut down by Virginia’s environmental regulators. In the end, the immediate threat to the region’s reliability was obviated while the environmental concerns associated with the plant were not ignored. The action resulted in a model for how federal energy regulators and environmental regulators can address similar problems in the future.
Is it really so important to preserve regional differences?
Richard Stavros, Executive Editor
The July 11, 2006, edition of the Wall Street Journal contained an excellent opinion piece which posed the question: “What does ‘energy security’ really mean?” What is so striking about his article is that his analysis easily could describe power industry politics between low-cost states (suppliers) and high-cost states (consumers).