FERC`s transmission policies

Much has been written about the impact of the Energy Policy Act of 1992 (EPAct) and about exempt wholesale generator (EWG) status. However, EPAct has not merely established a new basis for regulating power producers and facilities; it has also produced profound changes in the way transmission services are provided and priced. Understanding these changes, and their effects on transmission services and power producers, will be essential for power developers, utilities and power marketers to succeed in a competitive market where transmission cervices may be the final market barrier. The Act was the first statutory scheme which attempted to promote the use of transmission services in the interests of fostering competition. Given the expanded levels of wholesale competition in the electric power industry, due primarily to the changes effected by the EPAct since 1992, FERC is concerned that it adequately balances its dual objectives of promoting coordination and competition. The Commission is evaluating whether alternatives to traditional power pools are necessary to achieve such goals. In the alternative, pooling or regional transmission groups may signal movement in the direction of wider and larger bases to manage the new patterns of transmission regulation affecting wholesale power generators and power marketers inmore » the future. This will create universal demands for technical competence and understanding of transmission and pricing in the future to be an effective player in US market development.« less