Utilities decry ‘shadow affiliations’ under new FERC program, prompting pushback

摘要

With a compliance deadline for a new reporting program looming, apetition for a declaratory order filed with the Federal Energy RegulatoryCommission has sparked a debate over whether financial institutionsthat acquire stakes in public utilities should be considered affiliates forthe purpose of guarding against market manipulation.At issue is Order 860, a July 2019 regulation (RM16-17) thatamended a reporting regime requiring electric power sellers to submitfilings under Section 205 of the Federal Power Act to demonstrateapplicants for market-based rate authority lack significant marketpower. The companies essentially must show that the market in whichthey plan to operate is sufficiently competitive. Order 860 mandatedthat the information be transmitted to a new relational, commissionadministereddatabase that identifies upstream ownership and passiveownership interests.