Federal Energy Regulatory Commission Approves Market-Based Rate Authorizations for 27 Entities

The Federal Energy Regulatory Commission (FERC) has approved market-based rate authorizations for 27 entities, including AEP Energy Partners, Inc. and Appalachian Power Company, following the submission of updated market power analyses for the Southwest Power Pool (SPP) region. The approval comes after the entities demonstrated that they and their affiliates do not have, or have adequately mitigated, horizontal and vertical market power, allowing them to sell electric energy and capacity at market-based rates.

Key Takeaways:

• The 27 entities, including major power companies, have been granted market-based rate authorizations for the SPP region, allowing them to sell electric energy and capacity at market-based rates.
• The entities submitted updated market power analyses, which demonstrated that they and their affiliates do not have, or have adequately mitigated, horizontal and vertical market power.
• The entities must file Electric Quarterly Reports (EQRs) with the Commission, consistent with Order Nos. 20014 and 768, and must comply with the requirements of Order Nos. 860 and 860-A.
• The approval does not constitute approval of any service, rate, charge, classification, or any rule, regulation, or practice affecting such rate or service provided for in the filed documents.
• Requests for rehearing by the Commission may be filed within 30 days of the date of issuance of this order, pursuant to 18 C.F.R § 385.713.

Statistics:

• 27 entities have been granted market-based rate authorizations for the SPP region.
• The entities include major power companies such as AEP Energy Partners, Inc. and Appalachian Power Company.
• The approval is based on the entities' updated market power analyses, which demonstrate that they do not have, or have adequately mitigated, horizontal and vertical market power.
• The entities must comply with Reporting Requirements, including filing EQRs with the Commission.

Sources:

• FERC Order: ER11-46-016, et al.
• FERC Regulation: 18 C.F.R. § 385.214
• FERC Regulation: 18 C.F.R. § 35.28