Public Utility Regulatory Policies Act

Southern California Edison (SCE) has asked the Federal Energy Regulatory Commission (FERC) to halt the state's Biennial Resource Plan Update energy auction (BRPU). SCE charges that the California Public Utilities Commission (CPUC) violated the Public Utility Regulatory Policies Act (PURPA) and FERC regulations by reinstating the auction late last year.

SCE believes that the auction, which requires California utilities to enter purchased-power contracts, could increase its potential stranded costs by up to $4 billion (in nominal dollars).

The Rhode Island Public Utilities Commission (PUC) intends to open a proceeding to consider the effect of fuel-adjustment clauses on utility incentives to reduce customer costs, finding that the passing through to customers of generating fuel costs may create a disincentive to supply-side efficiency.

The Energy Policy Act of 1992, amending section 111(d) of the Public Utility Regulatory Policies Act, requires states to consider electric utility investment in efficiency improvements at generation, transmission, and distribution facilities by October 24, 1995.

We begin the new year with a recap of the major rulings issued last year by state public utility commissions (PUCs).

Electricity took center stage as state commissioners began in earnest to examine rising competition in the power generation market. The seemingly endless number of privately sponsored seminars, conferences, and reports on the issue might suggest that regulators are following rather than leading on policy.