FERC Revises Market-Based Rate Procedures

摘要

The recent changes made by the commission will require filers to adjust their methodologies for the market power screens, DPTs, and SIL studies, but most of the changes are straightforward. The detailed recommendations and clarifications in Order No. 816 indicate that the commission is scrutinizing the underlying calculations of market power analyses. In order to reduce the likelihood of a follow-up request by commission staff, filers should be sure that all assumptions in the analyses are well-founded and explained, and that the workpapers provided with the filing are organized and clear. Order No. 816 became effective in January 2016. Utilities, attorneys, and economists, including the authors, will be watching closely to see how the new policies are actually implemented by the commission.