FERC is amending its regulations adopted in Order Nos. 888 and 889, and to the pro forma open access transmission tariff (OATT), to ensure that transmission services are provided on a basis that is just, reasonable and not unduly discriminatory or preferential. In April 1996, in response to its statutory obligation under FPA sections 205 and 206 to remedy undue discrimination, FERC adopted Order No. 888 prohibiting public utilities from using their monopoly power over transmission to unduly discriminate against others. FERC required all public utilities that own, control or operate facilities used for transmitting electric energy in interstate commerce to file OATTs containing minimum terms and conditions of non-discriminatory service. The Final Rule addresses deficiencies in the OATTs that had become apparent since 1996 and to facilitate improved planning and operation of transmission facilities.
The reforms adopted in the Final Rule provide greater clarity in the terms and conditions of the pro forma OATT, resolving ambiguities in the existing pro forma OATT that have made undue discrimination easier to accomplish and more difficult to detect. The CommissionÂs new civil penalty authority under EPAct 2005 provides ample power to remedy tariff violations, but it also places upon the Commission an increased responsibility to make the rules as clear as possible. The Commission fulfills that responsibility in the Final Rule by providing greater clarity where appropriate to several critical OATT provisions. The Final Rule also adopts a number of posting and reporting requirements that will provide the Commission and market participants with information about each transmission providerÂs performance of pro forma OATT obligations. For example, the Commission requires transmission providers to post specific performance metrics related to their completion of studies required under the pro forma OATT. The Commission will continue to audit compliance with the pro forma OATT, and toward that end the final rule requires transmission information kept on OASIS to be retained for audit purposes for five years. Finally, the Final Rule adopts a number of reforms to operational penalties assessed under the pro forma OATT, including so-called Âover-use penalties and the treatment of operational penalty revenues collected from transmission providers and their affiliates.
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FERC Press Release-OATT Reform.doc
Electric Rate Schedule Filings: RM05-25-000 NOPR: Preventing Undue Discrimination and Preference in Transmission Service