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:
-
FERC Issues Draft Smart Grid Policy Statement
March 26, 2009 - Commission calls MultiSpeak Initiative “best work to date” on interoperability at the distribution level. more >>
NRECA Congratulates Jon Wellinghoff
March 20, 2009 - Wellinghoff named Chairman of the Federal Energy Regulatory Commission by President Obama. more >>
-
NRECA Argues for Consumer Protection Before Supreme Court
March 20, 2009 - Amicus brief filed with American Public Power Association on March 18. more >>
Capacity and Transmission Challenges Loom for Bulk Power System
November 7, 2008 - Seven of 15 regions in North America projected to dip below recommended capacity margins in the next five years according to NERC assessment. more >>
GAO Report Questions Regional Transmission Organization Accountability
October 15, 2008 - Federal Energy Regulatory Commission (FERC) oversight of RTO’s raises concerns. more >>
Federal Energy Regulatory Commission Delivers Bad News for Ratepayers
July 2008- Increased fuel costs and higher costs for new construction likely to push up power prices in all regions for several years. more >>
-
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 >>
-
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 >>
Documents:
NRECA files Pleading with FERC
On November 16, 2009, NRECA filed a pleading advocating for two clarifications of the Commission's standards of conduct for transmission providers insofar as those standards impact co-ops.
Type: Filing Date: 2009-11-20 Size: 50KB- NRECA files Reliability Related Comments at FERC
NRECA filed comments at FERC on October 28, 2009 related to a technical methodology developed by the University of Wisconsin-Madison that FERC is considering using to determine the reach of reliability standards.
Type: Filing Date: 2009-11-18 Size: 44KB - NRECA Filed Comments Concerning Certain NAESB Standards
On October 22, 2009, NRECA filed comments concerning Standards for Business Practices and Protocols for Public Utilities. NRECA, along with the majority of commenters, supports the substance of NAESB standards proposed for incorporation into FERC's regulations. The support is based in material part on the meaningful involvement of NRECA and NRECA members in the NAESB process that produced the various recommendations to FERC.
Type: Filing Date: 2009-11-18 Size: 262KB - NRECA Files Petition at U.S. Supreme Court
On Friday, September 18th, NRECA jointly petitioned the U.S. Supreme Court to review a decision of the U.S. Court of Appeals for the 4th Circuit.
Type: Filing Date: 2009-09-18 Size: 100KB - NRECA filed comments
On August 17, 2009, NRECA filed comments opposing a Transmission Relay Loadability reliability standard
Type: Filing Date: 2009-08-26 Size: 68KB - NRECA filed a pleading on August 17, 2009
NRECA filed a pleading on August 17, 2009, requesting rehearing and clarification of FERC scarcity pricing rules that could unnecessarily expose consumers to high prices in organized markets.
Type: Filing Date: 2009-08-26 Size: 78KB - NRECA filed a joint request with APPA, TAPS and others
NRECA filed a joint request with APPA, TAPS and others on August 17, 2009, requesting rehearing and clarification of FERC's rule on demand response aggregators in organized markets.
Type: Date: 2009-08-26 Size: 204KB - Costs for Smart Grid Projects Should not be Passed onto Co-ops
NRECA filed supplemental smart grid comments at FERC on June 2, 2009. The primary focus of the comments covered the type of rate review that should be used by FERC regarding FERC-jurisdictional projects that are partially funded by DOE. While an expedited rate review may be appropriate, there is nothing in legislation or regulation that would allow FERC to eliminate any rate review elements. Public utilities taking on smart grid projects should not pass the costs for such projects onto co-ops without such costs going through a normal FERC rate review involving prudence and used and useful evaluations.
Type: Date: 2009-06-02 Size: 39KB - NRECA Protests Lack of Access to Transmission tariff-related standards
NRECA, jointly with APPA, filed comments at FERC complaining of transmission tariffi-related standards that apply to all market participants but which are not publicly available. Our comments complain about FERC allowing such "private law" and further ask FERC to clarify that such private law cannot result in FERC imposed civil penalties if inadvertently violated.
Type: Date: 2009-05-26 Size: 143KB - NRECA Refutes PJM Attempt to 'Cherry-Pick' Customers
NRECA and American Public Power Association filed at FERC its latest rebuttal of PJM's aggressive attempts to limit the ability of co-ops (and other nonjurisdictional utilities) to determine the extent to which demand response aggregators can cherry pick co-op customers or otherwise interfere with co-op demand response programs.
Type: Date: 2009-05-19 Size: 1410KB - NRECA Protests Closed FERC Enforcement Proceedings
On May 4, 2009, NRECA filed a pleading at FERC jointly with the American Public Gas Association in which PJM brought a complaint to FERC alleging market manipulation. FERC investigated the complaint through a closed proceeding and determined that certain aspects of the wrongdoing asserted by PJM did not constitute violations of law. No other input was requested. (Type: Pleading)
Type: Date: 2009-05-04 Size: 43KB - NRECA Comments on Integrating Renewable Resources Into the Wholesale Electric Grid
NRECA filed comments urging FERC not to abandon the current industry-led, open and inclusive bottom-up planning approach, but instead, should ensure that planning, operation and pricing of new transmission facilities is implemented consistent with existing infrastructures and policies. DATE: April 30, 2009 [Filed comments]
Type: Date: 2009-05-01 Size: 47KB - FERC Should Not Dismiss Antitrust Allegations
NRECA joined the American Antitrust Institute and APPA in this pleading at FERC that sets forth the many FERC and court rulings that are contrary to FERC's summary declaration, and requests the Commission to vacate that declaration. Although FERC is not strictly bound by the dictates of the antitrust laws, this does not relieve FERC of the obligation to take antitrust principles into account when considering competition issues. (Type: Pleading)
Type: Date: 2009-04-17 Size: 40KB - NRECA Supports DOE Transmission Corridors Procedures
NRECA jointly filed with EEI, APPA et al. a brief with the U.S. Court of Appeals for the 9th Circuit. In that "consolidated" appeal, the court determined to collectively consider many appeals, numerous environmental groups challenged the procedures used by DOE to designate national interest transmission corridors. Recall that this all ties together because FERC's siting rules can only apply in the corridors first designated by DOE. The brief supports the procedures used by DOE. NRECA's participation specifically supports the procedures used but does not take a position on the selection of particular corridors. (Type: Brief)
Type: Date: 2009-04-17 Size: 413KB - NRECA Joins Brief Challenging FERC Enforcement Settlement
On Friday, April 17, NRECA with APPA, the states of Maryland, Pennsylvania and Indiana and the PJM Industrial Customer Coalition jointly filed a brief in the U.S. Court of Appeals for the D.C. Circuit challenging an enforcement settlement where FERC authorized the settlement and disallowed comments on interventions from third parties. NRECA and others appealed. This pleading defends the appeal and is critical: If the current motion is lost there are no further appeals.
Type: Briefing Date: 2009-04-17 Size: 56KB - NRECA Supports FERC Authority
NRECA filed a joint petition for rehearing en banc on April 7 in the FERC siting rules appeal in the 4th Circuit. NRECA supports FERC's jurisdiction over the siting of an electric transmission line in a National Interest Corridor when a state has withheld approval for more than 1 year.
Type: Filing Date: 2009-04-07 Size: 112KB - NRECA Supports NERC 2009 Business Plan and Budget
NRECA Supports NERC 2009 Business Plan and Budget and the 2009 Business Plans and Budgets of Regional Entities and for Approval of Proposed Assessments to Fund Budgets (as subsequently corrected) and in its December 15, 2008, Compliance Filing in Response to October 16, 2008 Order on 2009 Business Plans and Budgets, to eliminate the Reliability Readiness Evaluation Program (“RREP”). (FERC - filed comments) [04-06-09]
Type: Filing Date: 2009-04-06 Size: 64KB - NRECA Reasserts Protest:
NRECA (jointly with APPA) formally protested a tariff filing by PJM which sought to limit the right of co-ops and others to stop third parties from cherry picking customers out of co-op demand response programs. PJM subsequently responded to our protest. NRECA (jointly with APPA) is now vigorously reasserting its protest of that tariff filing by PJM and explains the various errors and is characterizations in PJM's response.(Filing) DATE: March 31, 2009.
Type: Filing Date: 2009-04-02 Size: 64KB - NRECA filed a joint (with APPA) amicus brief at the U.S. Supreme Court
NRECA filed a joint (with APPA) amicus brief at the U.S. Supreme Court on March 18, 2009, arguing that non-party consumers do not lose their Congressionally assured protection of just and reasonable rates merely because private parties to a contract have provided otherwise. (DATE: 3-18-2009) ( Joint filing: Brief)
Type: Filing Date: 2009-03-19 Size: 323KB - NRECA Protests PJM Tariff Filing:
NRECA asserts that FERC rules permit co-ops to determine the extent to which third party ARCs may solicit co-op members. PJM wants co-ops to either fully allow ARC participation or fully disallow it, with nothing in between (i.e. all or nothing). NRECA asserts this is an impermissible limitation and diminishes the flexibility authorized by FERC rules.
Type: Filing Date: 2009-03-03 Size: 1,233KB - RTO Report Card
This report is the third edition in a series of "RTO Report Cards" that track the performance of major functional elements of selected RTOs in 2007. This edition focuses on the performance of ISO New England, the Midwest Independent Transmission System Operator, the New York Independent System Operator, and the PJM Interconnection.
Type: Filing Date: 2009-02-18 Size: 1,483KB - NRECA and APPA Urge the FTC to use its authority to ensure that Cooperatives and Public Power systems Can Participate in Joint Transmission Projects
NRECA is keenly interested in preventing of the accumulation, consolidation and abuse of market power in the energy industry. To encourage joint projects that increase transmission access to market participants and reduce both retail and wholesale power prices, NRECA and APPA urge the FTC to use its authority under Section 5 and the Hart-Scott-Rodino Act to ensure that cooperatives and public power systems interested in participating in joint transmission projects are not unlawfully excluded from such participation. (Letter comment) 10-24-2008
Type: Filing Date: 2008-11-19 Size: 1076KB - 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 - 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