Electric powerlinesToday we highlight the Quadrennial Energy Review’s (“QER”) focus on grid security recommendations in the context of the newly adopted Fixing America’s Surface Transportation Act (“FAST Act”) and the Federal Power Act (“FPA”).  It discusses FERC role in grid security and suggests that FERC utilize its regional entities to assist in security planning.
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Logo courtesy of the Federal Energy Regulatory Commission
Logo courtesy of the Federal Energy Regulatory Commission

The Federal Energy Regulatory Commission (“FERC”), in a recent Notice of Inquiry (NOI), is exploring whether to revise its current approach to identifying and analyzing market power in the context of Federal Power Act Section 203 (utility mergers and acquisitions) and 205 (market based rate authorizations).  Currently, FERC uses separate methodologies when analyzing an entity’s market power when an entity seeks prior-approval of a merger or similar jurisdictional transaction under Section 203, and when an entity applies for authority to sell energy products in FERC-regulated wholesale energy markets under Section 205.  Through this NOI, FERC seeks comments on whether it should “harmonize” and “streamline” these two market-power analysis methods.
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