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Power & Pipes

FERC, CFTC, and State Energy Law Developments

On September 20, the Federal Energy Regulatory Commission (FERC) issued Order No. 739, Promoting a Competitive Market for Capacity Reassignment. Order No. 739 permanently lifts the price cap for transmission customers reassigning electric transmission capacity. FERC explained that lifting the price cap is intended to facilitate the development of a market for electric transmission capacity reassignments as a competitive alternative to primary transmission capacity.

In Order No. 890, Preventing Undue Discrimination and Preference in Transmission Service, FERC had determined that it would be appropriate to lift the price cap for all transmission customers reassigning point-to-point transmission capacity, believing that the cap had served to reduce transmission options for customers and had impaired the development of a secondary market for transmission capacity. Read more…