Fortnightly Magazine - February 15 1995

How State Regulators Should Handle Retail Wheeling

By Kenneth W. Costello, Robert E. Burns, and Youssef HegazyThe electric power industry is next in line for dramatic change. Competition has edged into individual markets, particularly the bulk-power market. This move toward competition has provoked debate in several states over the merits of retail wheeling. Specifically, should retail customers have the right to purchase their power requirements from sources other than the local utility? Many states have addressed the issue in different forums, at different levels of intensity.

FERC to States: No QF Rates Higher than Avoided Cost

The Federal Energy Regulatory Commission (FERC) has ruled that states may not set rates higher than a utility's avoided cost for power purchases from qualifying facilities (QFs) (Docket Nos. EL93-55-000 and

EL87-53-003). The new rule comes as part of a case in which Connecticut Light and Power Co.

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