Electric cooperatives are concerned about the accumulation and abuse of market power in the electric industry because cooperatives nationally purchase about half the electricity needed to serve their consumers and often rely on transmission facilities owned by other utilities to deliver that electricity. When market power is abused, rates for wholesale power can be raised and access to transmission can be unfairly limited.
The Federal Energy Regulatory Commission (FERC), the federal agency that implements the Federal Power Act, has as a primary goal of the protection of consumers against market power abuse.
Through comments and pleadings filed with FERC, NRECA actively opposes market power abuse that results in unjust and unreasonable electric rates. NRECA also works closely with FERC to avoid overly burdensome regulations that can create unnecessary costs and interfere with reliable service.
To learn more about NRECA’s position affecting Wholesale Power/FERC Issues, please select the links below.
News:
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NERC Outlines Major Challenges to Power System
November 1, 2007- NRECA today joined other associations in a filing to uphold the ability of FERC to protect energy more >>
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NRECA Supports FERC's Authority to Bring Enforcement Action Against Amaranth
September 28, 2007 - NRECA today joined other associations in a filing to uphold the ability of FERC to protect energy consumers under the Energy Policy Act of 2005. more >>
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NRECA Releases Report Card For Nation’s Regional Transmission Organizations
August 31, 2007 - An NRECA-commissioned “report card” on the nation’s Regional Transmission Organizations forecast continued experimentation with market design and periodic modifications of basic market rules. The report expressed uncertainty as to whether the grid groups and the wholesale markets are providing net benefits for consumers. more >>
Documents:
NRECA Responds to FERC NOPR on Wholesale Competition in Organized (i.e. RTO) Electricity Markets
NRECA filed comments on April 21 at FERC in response to FERC's notice of proposed rulemaking on wholesale competition in organized (i.e. RTO) electricity markets.
The comments address the four broad areas raised by the Commission's NOPR (demand response, market monitoring, RTO responsiveness, long-term contracts) and also extend beyond the Commission's proposal to point out additional significant problems with wholesale electricity markets. As to those additional problems, the comments propose solutions ("we don't just throw stones") and also provide measured support for the concerns raised by APPA and approximately forty other commenters several months ago. Date: 2008-04-21
Type: Filing Date: 2008-04-21 Size: 1076KB- Siting Appeal Brief January 31,2008
NRECA Supports FERC's Transmission Siting Rules: On January 31, NRECA filed a brief (jointly with American Public Power Association, Edison Electric Institute, American Wind Energy Association, et al.) in the United States Court of Appeals for the Fourth Circuit. The brief supports FERC's siting rules for transmission lines. FERC's siting rules are "backstop" rules consistent with NRECA's eminent domain resolution.
Type: Filing Date: 2008-02-05 Size: 45.5KB - A pleading was filed jointly by NRECA, APPA, TAPS and the TDU Systems on January 28
A pleading was filed jointly by NRECA, APPA, TAPS and the TDU Systems on January 28. It asks for rehearing and/or clarification on several points all relating to the Federal Electric Regulatory Commission's (FERC) experimental lifting of price caps on reassigned transmission capacity. Although the pleading makes several suggestions for improving the Commission's experiment, it nevertheless continues to assert that FERC's decision to lift price caps on reassigned transmission capacity is not supported by substantial evidence and will be detrimental to consumers. (Dated: 01-28-08) (FERC Joint Rehearing request)
Type: Filing Date: 2008-02-01 Size: 45.5KB - On January 28, NRECA filed a pleading commending the Federal Energy Regulatory Commission (FERC) for leaving in place the fundamental reforms
On January 28, NRECA filed a pleading commending the Federal Energy Regulatory Commission (FERC) for leaving in place the fundamental reforms in Order No. 890, but asked for rehearing, reconsideration and/or clarification on a limited number of issues pertaining to credits for customer-owned issues, conditional firm service, undesignation of system sales and attestation for designation network resources. (Date: 01-28-08)
Type: Filing Date: 2008-02-01 Size: 63.5 - NRECA filed a joint brief with APPA in the United States Supreme Court on January 14
NRECA filed a joint brief with APPA in the United States Supreme Court on January 14. The brief relates to an appeal of a decision by the United States Court of Appeals for the Ninth Circuit. The Ninth Circuit had ruled that FERC erred in applying the "public interest standard" instead of the "just and reasonable standard" when FERC rejected requests to modify contracts entered into during the California debacle. In this brief NRECA supports application of the just and reasonable standard with EPSA members urging the "public interest standard." (NRECA) Brief 01-14-08
Type: Filing Date: 2008-01-17 Size: 822KB - NRECA filed joint comments with APPA, EEI and EPSA at OMB on January 14
NRECA filed joint comments with APPA, EEI and EPSA at OMB on January 14 on the Federal Energy Regulatory Commission's proposed information collection on potential cyber vulnerability. The comments point out that the information collected should be strictly limited to information that is needed and that such information have appropriate confidentiality and security protections. Questions pertaining to these comments should be directed to Barry Lawson,NRECA Senior Manager, Power Delivery at (703) 907-5781 or barry.lawson@nreca.coop.
Type: Filing Date: 2008-01-17 Size: 32KB - NRECA Filed Comments
NRECA filed comments following up on its participation in FERC's enforcement conference last month. Among other things, the comments explain that a fair and robust enforcement program is important for co-ops, that FERC's enforcement program should be consumer-focused, and that several steps can be taken to lessen attacks from companies that would prefer to push FERC back into the days before FERC had EPAct-enhanced penalty authority (i.e. enhanced authority that NRECA supported). [Filed 12-17-07]
Type: Filing Date: 2007-12-18 Size: 45KB - NRECA Comments Responding to FERC's Advanced Notice of Proposed Rulemaking on Wholesale Competition in Regions with Organized Electric Markets
NRECA's comments present a current view of where NRECA is on demand response. Other subjects addressed include long-term contracting in organized markets, market monitoring and responsiveness of RTOs. A copy of the comments is attached. (FERC Docket Nos. RM07-19-000)
Type: Filing Date: 2007-09-14 Size: 102KB - NRECA Requests Tightening Up of Blanket Merger Authorizations:
NRECA (jointly with APPA) filed comments on September 6 that deal with blanket merger authorizations. A key issue involves asking FERC to tighten up the blanket authorizations (read "automatic") to apply to a smaller class or to otherwise add conditions that would mitigate the exercise of market power for merging utilities.
Type: Filing Date: 2007-09-10 Size: 48KB - FERC Should Adopt Proposed Codification
NRECA (jointly with APPA) filed comments on September 6 at FERC that deal with cross-subsidization and affiliate issues. A key issue involves asking the Commission to confirm that the rule does not apply to electric cooperatives.
Type: Filing Date: 2007-09-10 Size: 53KB - The Regional Transmission Organization Report Card: Wholesale Electricity Markets and RTO Performance Evaluation
An NRECA-commissioned “report card” on the nation’s Regional Transmission Organizations forecast continued experimentation with market design and periodic modifications of basic market rules. The report expressed uncertainty as to whether the grid groups and the wholesale markets are providing net benefits for consumers.
Type: Report Date: 2007-08-29 Size: 1419KB - NRECA RM0525 Rehearing
NRECA requests FERC to grant rehearing and/or provide clarification for provisions in new FERC open access rule Order No. 890. Filed 03-19-07 Request for Clarification and Rehearing (Dkt. Nos. RM05-25-000; RM05-17-000)
Type: Report Date: 2007-03-20 Size: 349KB - During Emergencies FERC Should Not Abandon NERC's Industry Standards:
NRECA requests clarification concerning a reliability-related compliance plan that had been submitted by NERC and then ruled upon by FERC. Among other things, the pleading urges FERC to stay clearly within the bounds of EPAct's reliability provisions when dealing with emergencies. In overly simple terms, the fear is that FERC will effectively abandon NERC's industry consensus standards development process when there is an emergency context. (Clarification Request)- 02-20-07
Type: Report Date: 2007-02-22 Size: 138KB - Joint Reply Brief
NRECA filed a joint (w/APPA) reply brief in the United States Court of Appeals D.C. Circuit in the City of Vernon appeal where we are fighting a FERC order requiring a nonjurisdictional transmission provider to pay refunds. (02-15-2007)
Type: Report Date: 2007-02-22 Size: 55KB - NRECA filed comments at FERC responding to a FERC staff report on cyber security reliability standards.
NRECA addressed general matters raised by the Preliminary Assessment, including the recommendation that proposed standards should not focus on "large" and "small" entities, but instead focus on the entities that own and/or operate critical assets. FERC comments --02-21-2007
Type: Report Date: 2007-02-22 Size: 82KB - NRECA Supports Revision 3 by NERC.
NRECA filed a very abbreviated comment to FERC indicating our support for NERC's compliance registry
Type: Report Date: 2007-02-22 Size: 52KB - NRECA filed an incentives "protective" petition for review.
In it NRECA acknowledges to the court that our appeal may be too early but then explains why we are doing it.(Protective petition)-- 2-20-2007
Type: Report Date: 2007-02-22 Size: 167KB - FERC Has Authority to Ensure Just and Reasonable Rates
FERC Has Authority to Ensure Just and Reasonable Rates: NRECA filed supplemental comments at FERC on whether FERC has the authority to condition its grant of market based rate authorizations to public utility sellers in wholesale markets. NRECA takes the position that FERC has not only the authority but an obligation to exercise that authority to ensure that resulting rates are just and reasonable. (Supplemental comments) Filed 02-01-2007
Type: Report Date: 2007-02-01 Size: 144KB 
NRECA Requests Permission to Intervene in a proceeding that raises "FERC Lite" (FPA 211A) issues
NRECA responds to issues concerning the Federal Energy Regulatory Commission’s policy with respect to reciprocity tariffs and the applicability of the new Section 211A of the Federal Power Act (“FPA”).
NRECA does not believe that this proceeding implicates Section 211A. However, should the Commission conclude otherwise, its response to the Section 211A claims in this proceeding may have implications for unregulated transmitting utilities and other parties beyond those represented in this proceeding. (Motion to Intervene) 01-22-07
Type: Report Date: 2007-01-25 Size: 62KB- FERC Being Over Expansive in Implementation
NRECA requested rehearing on FERC's transmission rate incentives pricing policy stating FERC's expanded policy is being overly expansive in it's implementation of the relevant EPAct language and that just and reasonable rates will not result. (Rehearing request) 01-22-07
Type: Report Date: 2007-01-25 Size: 131KB - FERC's Orders defective Since they Failed to Reply to Expert Testimony provided by NRECA.
NRECA filed the joint (with Dairyland) reply brief at the United States Court of Appeals for the D.C. Circuit in an appeal from a FERC order that allocated certain costs to grandfathered contracts that were otherwise insulated or "carved out" of the Day-2 market of the Midwest Independent System Operator. The contracts were carved out by FERC, but certain other costs were allocated by FERC to these contracts. [01-05-07] (Reply Brief)
Type: Report Date: 2007-01-09 Size: 857KB - Mandatory Reliability Standards for the Bulk-Power System and Facilities Design, Connections and Maintenance Reliability Standards
NRECA joined with APPA to file joint comments before FERC asserting that the proposed Reliability rulemaking fails to comply with the Regulatory Flexibility Act's protections for "small entities" (entities that sell less than 4 million megawatt hours per year) and imposes a significant regulatory burden on a large number of small entities that do not have a material impact on the reliability of the bulk-power system. [Dkt. No. RM06-16-000 and RM07-3-000] Date: 01-03-07
Type: Report Date: 2007-01-04 Size: 200KB - FERC Mandatory Reliability Standards for the Bulk-Power System
NRECA asserts, in comments filed today, that reliability rules should be confined to entities that have the ability to materially effect the bulk power system and not necessarily burden small, member-owned distribution systems. NRECA also asserted that FERC does not have statutory authority to mandate the details of reliability standards adopted by NERC, with NRECA attorneys observing that "FERC can refuse to authorize a NERC standard but cannot direct NERC to adopt a specific standard." Docket No. RM06-16-000 (01-03-07 Comments filed)
Type: Report Date: 2007-01-04 Size: 56KB - The Regional Transmission Organization Report Card: Wholesale Electricity Markets And RTO Performance Evaluation
This study was initiated with the objective of ultimately shedding some light on the questions of how well certain important functions or elements of RTOs are working, and comparing results of various RTO approaches. The study examines various elements of market performance and market efficiency from a theoretical economic perspective and according to the outcomes produced.
Type: Report Date: 2006-12-21 Size: 1003KB - NRECA Review of LECG Study on Coordinated Markets
The LECG study looks at the impact of implementing coordinated wholesale markets in the PJM and MISO RTOs, by reviewing the average residential rates of cooperative and municipal utilities. While LECG does one of the most credible jobs to date on this subject, our analysis shows the results presented in the report are highly questionable since they are based upon a question approach and questionable assumptions. If you wish a copy of the study, contact Paul McCurley, NRECA Senior Manager, Power Supply at Issac.Mccurley@nreca.coop [Filed 12-18-2006]
Type: Date: 2006-12-20 Size: 51KB - Statement of Jay Morrison, Senior Regulatory Counsel, NRECA
Statement of Jay Morrison, Senior Regulatory Counsel, NRECA, for the Technical Conference on Demand Response and Advanced Metering.
Type: Filing Date: 2006-08-09 Size: 53KB 
FERC Finds That Co-ops Lead Industry in Automated Meter Technology
FERC assessment of demand response and advanced metering finds that America’s electric cooperative network leads the electric utility industry in deploying advanced, energy saving automatic meter technology.
Type: Date: 2006-08-09 Size: - NRECA Continues to Support FERC's Position on Long-term Transmission Supply Rights:
NRECA files Reply comments on April 3 with FERC strongly supporting the Long Term Transmission Rights rulemaking.
Type: Filing Date: 2006-04-06 Size: 172KB