Wheeling for cogeneration and small power-production facilities
Joseph R. Tiano, Michael J. Zimmer
Abstract
Joseph R. Tiano, Michael J. Zimmer
Abstract
New problems have arisen over the ability to wheel power from decentralized cogeneration and small generation sources between electric utilities or between industrial facilities within a common geographical area. This article explores the historical and current positions of the Federal Power Commission, now the Federal Energy Regulatory Commission (FERC) as it has interpreted its authority under Part II of the Federal Power Act to order the wheeling of electric power. The authors also outline and discuss related antitrust issues which often arise within the context of wheeling and the possibilities of recognizing potential antitrust violations as a factor in promoting wheeling arrangements. Concluding that Congress will not address the issue, they recommend the negotiation of wheeling rates by project sponsors to introduce flexibility and avoid more regulation and costly antitrust litigation. 21 references.
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New problems have arisen over the ability to wheel power from decentralized cogeneration and small generation sources between electric utilities or between industrial facilities within a common geographical area. This article explores the historical and current positions of the Federal Power Commission, now the Federal Energy Regulatory Commission (FERC) as it has interpreted its authority under Part II of the Federal Power Act to order the wheeling of electric power. The authors also outline and discuss related antitrust issues which often arise within the context of wheeling and the possibilities of recognizing potential antitrust violations as a factor in promoting wheeling arrangements. Concluding that Congress will not address the issue, they recommend the negotiation of wheeling rates by project sponsors to introduce flexibility and avoid more regulation and costly antitrust litigation. 21 references.
Key concepts: Wheeling, Cogeneration, Commission, Negotiation, Context (archaeology), Flexibility (engineering), Business, Production (economics)