On October 15, 2015, the FERC issued Order No. 816 in which it
promulgates a final rule ("Final Rule") to revise its
requirements for market-based rate ("MBR") authorizations
for wholesale sales of electric energy, capacity, and ancillary
services by public utilities. The FERC expects that the
changes implemented under the Final Rule will increase transparency
in the MBR application process and relieve burdensome reporting
requirements for MBR sellers, while continuing to ensure that MBRs
are just and reasonable.
The Final Rule adopts two revisions proposed in the June 19,
2014 Notice of Proposed Rulemaking ("NOPR") that address
the market power analyses that an MBR applicant must
undertake. First, it defines the default relevant geographic
market for an independent power producer ("IPP") located
in a generation-only balancing authority area as the balancing
authority area of each transmission provider to which the IPP's
generation-only balancing authority area is
