The Federal Energy Regulatory Commission (FERC) set in motion a new round of restructuring for the U.S. electric power industry when it issued its latest Notice of Proposed Rulemaking (NOPR). The "Open Access" NOPR is a blueprint for dramatic changes, including a mandate for pro forma transmission tariffs, strict new standards to enforce "comparability of service" between transmission owners and third-party users, and rules to govern the recovery of various types of "stranded investment" through transmission rates.
The proposed rule stipulates that pro forma transmission tariffs based on FERC Form 1 data will go into effect for all utilities 61 days after the ruling, and that stranded investment charges will be bundled into transmission rates for customers that seek to purchase power outside the system. The latter stipulation will greatly complicate the calculation of transmission tariffs and is sure to be disputed by power marketers, wholesale customers, and others who seek to escape high rates.