Electricity Restructuring Background: The Public Utility Regulatory Policies Act211 of 1978 and the Energy Policy Act of 1992. CRS Report for Congress

摘要

Electric utilities have been subject to comprehensive federal and state economic211u001eregulation since enactment of the Public Utilities Holding Company Act of 1935 211u001e(PUHCA) and the Federal Power Act. This regulatory framework remained virtually 211u001eunchanged between 1935 and 1978. The oil embargoes of the 1970's created concerns 211u001eabout the security of the nation's electricity supply leading to enactment of the 211u001ePublic Utility Regulatory Policies Act of 1978 (PURPA). For the first time, 211u001eutilities were required to purchase power from outside sources. This first 211u001eincremental change to traditional electricity regulation started a movement 211u001etowards a market-oriented approach to electricity supply. Following the enactment 211u001eof PURPA, two basic issues stimulated calls for further change: whether to 211u001eencourage nonutility generation and whether to permit utilities to diversify into 211u001enon-regulated activities. The Energy Policy Act of 1992 (EPACT) increased 211u001ecompetition in the electric generating sector by creating new entities that can 211u001egenerate and sell electricity at wholesale without being regulated as utilities 211u001eunder PUHCA. PURPA began to shift more regulatory responsibilities to the federal 211u001egovernment, and EPACT continued that shift away from the states by creating new 211u001eoptions for utilities and regulators to meet electricity demand. As the electric 211u001eutility restructuring debate evolves, additional policy issues to be addressed 211u001emay include federal-state jurisdictional roles, stranded cost recovery, industry 211u001estructure, and non-economic regulatory factors.