FERC Orders Power Pools to Transmit

Fortnightly Magazine - July 1 1995
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For the first time, the Federal Energy Regulatory Commission (FERC) has directed a power pool, the Pennsylvania-New Jersey-Maryland (PJM) Power Pool, to provide electric transmission services to an electric utility, Duquesne Light Co. (Docket Nos. TX94-10-000 and TX94-8-000). It gave PJM 70 days to negotiate rates and terms with Duquesne, which had asked for transmission service to market excess capacity and energy. The FERC ordered the 11 members of the pool to negotiate jointly with Duquesne, and to charge comparable rates.

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In a related case, the FERC ordered three members of the Allegheny Power System to provide transmission service to help Duquesne market power in and across the PJM system. Both orders are proposed, which allows for negotiations before a final decision is issued.

FERC chair Elizabeth A. Moler said that power-pool membership does not absolve utilities of their responsibility to provide transmission services under section 211 of the Federal Power Act. She noted, however, that unique issues with respect to power pools remain to be resolved.

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