FERC Seeks More Open Power Grids

The Federal Energy Regulatory Commission on Thursday proposed tighter rules governing U.S. electricity utilities’ obligations to give independent power generators access to their giant power grids. It would be the first major rewrite of the regulations in a decade.

Last year, FERC Chairman Joseph Kelliher said that the agency’s landmark Order 888, which threw the electricity industry open to competition, needed to be recast because it allowed utilities to exercise “undue discrimination and preference” in doling out grid access. FERC on Thursday proposed changing its 1996 tariff to require utilities to more clearly define the space available on their grids, which is the basis for calculating how much capacity must be ceded.

FERC will take industry comment on its proposal and issue a final rule “months down the road,” Kelliher said.

For years, independent power generators such as Calpine Corp. have complained that big utilities have exploited existing rules to block access for competitors who rely on the utility grid to carry their power to market.

The Electric Power Supply Assn., which represents many non-utility power generators and marketers, said it was pleased that FERC was acting.

“Non-discriminatory access to the transmission system is critical to ensure that those with both power generation and transmission control are unable to use their transmission market power to block competitors,” said the power supply group President John Shelk.