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ARTICLE · 06 JUNE 2006

Energy Client Alert, June 2005

Powell Goldstein LLP
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On May 18, 2006, the Federal Energy Regulatory Commission issued a Notice of Proposed Rulemaking to reform the open access transmission tariff. (Docket No.RM05-25) The reforms, while not making dramatic changes, mark the first significant alteration to the open access transmission rules in the decade since their enactment

United StatesEnergy and Natural Resources
Richard Drom
Richard Drom

FERC Proposes Reforms To Open Access Transmission Rules

On May 18, 2006, the Federal Energy Regulatory Commission ("FERC") issued a Notice of Proposed Rulemaking ("NOPR") to reform the open access transmission tariff ("OATT"). (Docket No. RM05-25) The reforms, while not making dramatic changes, mark the first significant alteration to the open access transmission rules in the decade since their enactment.

The original purpose of the OATT was to encourage competition in wholesale electricity markets, but transmission-dependent utilities and independent power interests have long complained that the tariff contains loopholes and ambiguities which allow transmission owners to discriminate against them. FERC’s proposed reforms address these concerns, calling for increased transparency in transmission expansion planning and greater specificity in rules and guidelines.

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