FERC Rates and Tariffs Public Utility Series: Unveiling the Complexities and Benefits

When it comes to managing and regulating the electricity markets in the United States, the Federal Energy Regulatory Commission (FERC) plays a crucial role. Among the many responsibilities that fall under FERC's domain, rates and tariffs are of paramount importance.

Understanding FERC Rates and Tariffs

FERC rates and tariffs refer to the pricing structures and regulations established by FERC for electric transmission and wholesale sales of electricity. These rates and tariffs outline the rules and guidelines that govern the fair and just practices in the electricity marketplace.

FERC ensures that rates charged by public utilities are just and reasonable by closely monitoring the cost components and ensuring that utilities have a fair opportunity to recover their costs while meeting customer demands. The objective is to maintain efficient, reliable, and sustainable electricity services for consumers and promote competition within the industry.

FERC Rates and Tariffs (Public Utility Series)

by LandMark Publications(Kindle Edition)

5 out of 5

Language	:	English
File size	:	3579 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	4104 pages
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The Benefits of FERC Rates and Tariffs

The implementation of FERC rates and tariffs brings several benefits to the public utility sector, consumers, and the overall electricity market. Here are some key advantages:

1. Fair Pricing and Cost Recovery

FERC rates and tariffs ensure that public utilities do not engage in unfair practices such as price gouging or monopolistic behavior. These regulations set limits on the charges utility companies can impose on consumers, preventing arbitrary price hikes and ensuring fair treatment for all customers.

2. Stimulating Competition

FERC rates and tariffs foster a competitive market environment, encouraging new market participants to enter the industry. This competition helps drive down prices, improve efficiency, and promote innovation, ultimately benefiting consumers.

3. Encouraging Infrastructure Development

With well-defined rates and tariffs, public utilities have the confidence to invest in infrastructure development, including transmission lines and power generation facilities. This investment leads to a robust and reliable grid, reducing the risk of blackouts and ensuring a stable electricity supply.

4. Ensuring Regulatory Compliance

FERC rates and tariffs act as a regulatory framework that governs public utilities' operations. Adhering to these regulations is a prerequisite for gaining compliance, ensuring fair practices, and maintaining the reliability of electricity services.

The FERC Rates and Tariffs Public Utility Series

To shed light on the complexities and significance of FERC rates and tariffs, a comprehensive public utility series has been developed. This series aims to educate stakeholders, industry professionals, and the general public about the intricacies of FERC's role in governing rates and tariffs.

The FERC Rates and Tariffs Public Utility Series covers a wide range of topics, including:

• The Evolution of FERC's Regulatory Authority
• The Role of Rates and Tariffs in Electricity Markets
• FERC's Impact on Consumer Power Bills
• Ensuring Fair Practices in the Utility Sector
• Promoting Renewable Energy through Tariffs
• FERC's Relationship with Public Utilities and Grid Operators

Each article in the series provides detailed insights, analysis, and examples to illustrate the practical implications of FERC rates and tariffs on the electricity market and consumers.

By delving into these articles, readers can gain a comprehensive understanding of FERC's regulatory framework, the complexities surrounding rates and tariffs, and the positive impact they have on the public utility sector.

FERC rates and tariffs form the backbone of the regulatory environment for public utilities in the United States. The implementation of fair rates and tariffs ensures consumer protection, stimulates competition, encourages infrastructure development, and promotes compliance within the industry.

The FERC Rates and Tariffs Public Utility Series serves as a valuable resource for anyone seeking to grasp the intricate nature of FERC rates and tariffs. It is through understanding these complexities that we can work towards a more efficient, consumer-friendly, and sustainable electricity market.

So, whether you are an industry professional, a consumer, or simply curious about the operations of public utilities, the FERC Rates and Tariffs Public Utility Series has something to offer to everyone.

FERC Rates and Tariffs (Public Utility Series)

by LandMark Publications(Kindle Edition)

5 out of 5

Language	:	English
File size	:	3579 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	4104 pages
Lending	:	Enabled

FREE

THIS CASEBOOK contains a selection of 145 decisions of the U. S. Court of Appeals that analyze and discuss issues stemming from FERC rate and tariff rulings. The selection of decisions spans from 2007 to the date of publication.

[F]iled tariffs are "the equivalent of a federal regulation," and therefore a suit to enforce them arises under federal law. Cahnmann v. Sprint Corp., 133 F.3d 484, 488 (7th Cir.1998). FERC has exclusive jurisdiction over their subject matter under the filed rate doctrine. The Supreme Court has made clear that in passing the Federal Power Act, 16 U.S.C. § 824(b),Congress made a bright line distinction between state and federal jurisdiction, giving FERC plenary and exclusive authority over interstate wholesale [electric] rates. Nantahala Power & Light Co. v. Thornburg, 476 U.S. 953, 966, 106 S.Ct. 2349, 90 L.Ed.2d 943 (1986). [ ] Under the filed rate doctrine, no seller of energy may collect a rate other than the one filed with and approved by FERC, and no court may substitute its own judgment for that of FERC. Id. City of Osceola, Ark. v. Entergy Arkansas, Inc., 791 F. 3d 904 (8th Cir. 2015).

The authority to determine whether rates are just and reasonable is vested solely in FERC. Ak. La. Gas Co. v. Hall, 453 U.S. 571, 577, 101 S.Ct. 2925, 69 L.Ed.2d 856 (1981). City of Osceola, Ark. v. Entergy Arkansas, Inc., ibid.

FERC may permissibly rely on economic theory alone to support its s so long as it has applied the relevant economic principles in a reasonable manner and adequately explained its reasoning. See, e.g., Sacramento Mun. Util. Dist. v. FERC, 616 F.3d 520, 531 (D.C.Cir.2010) (holding that FERC appropriately made findings based on "'generic factual predictions' derived from economic research and theory ... given that it explained and applied the relevant economic principles in a reasonable manner" (quoting Transmission Access Policy Study Grp. v. FERC, 225 F.3d 667, 688 (D.C.Cir.2000))); Wis. Pub. Power Inc. v. FERC, 493 F.3d 239, 260-61 (D.C.Cir.2007) (holding that FERC's prediction that a given formula for allowing electricity suppliers to recover fixed costs in setting prices would "provide an efficient incentive to invest" was a "reasonable predictive judgment that warrants judicial deference"); Associated Gas Distribs. v. FERC, 824 F.2d 981, 1008 (D.C.Cir.1987) (stating that courts should not set aside an agency's "reliance on generic factual predictions merely because they are typically studied in the field called economics"). [Courts] consider whether FERC reasonably applied sound economic principles and articulated an adequate explanation for how those principles justified its . Central Hudson Gas & Elec. Corp. v. FERC, 783 F. 3d 92 (2nd Cir. 2015).

[The DC Circuit] give[s] "special deference" to FERC's expertise in ratemaking cases, reviewing the Commission's decision only to determine whether it "has examined the relevant data and articulated a rational connection between the facts found and the choice made." BP W. Coast Prods., LLC v. FERC, 374 F.3d 1263, 1282 (D.C.Cir. 2004). The Commission, however, must still "cogently explain why it has exercised its discretion in [the] given manner." Id. (quoting Exxon Corp. v. FERC, 206 F.3d 47, 54 (D.C.Cir.2000)).

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