News Release, 6/19/2014

June 19, 2014
News Media Contact
Craig Cano | 202-502-8680
Agenda Item E-6
Docket No. RM14-14-000

FERC Proposes to Refine Electric Market-Based Rate Program
The Federal Energy Regulatory Commission (FERC) today proposed to streamline and simplify its market-based rate
program for wholesale sales of electric energy, capacity and ancillary services. The changes will increase transparency
and reduce the burden on industry and the Commission, while continuing to ensure that the standards for marketbased rates result in sales that are just and reasonable.
FERC’s current market-based rate policy was codified in 2007. Based on more than six years of experience with
implementation of Order No. 697, today’s Notice of Proposed Rulemaking (NOPR) finds the burdens associated with
certain requirements outweigh the benefits in some circumstances. In addition to easing regulatory burdens, the
proposed changes will improve transparency in the Commission’s market-based rate program.
For example, the NOPR:
•

Clarifies that where all generation capacity owned or controlled by sellers and their affiliates in the relevant
balancing authority areas (including first-tier balancing authority areas or markets) is fully committed, sellers
may explain that their capacity is fully committed in lieu of submitting indicative screens as part of their
horizontal market power analyses.

•

Proposes to eliminate the requirement for a seller to submit indicative screens if a seller is in a regional
transmission organization/independent system operator market and relies on Commission-approved monitoring
and mitigation to prevent the exercise of market power.

•

Proposes to remove the requirement that market-based rate sellers file quarterly land acquisition reports and
provide information on their control of sites for development of new generation capacity.

•

Proposes to require that all long-term firm purchases of capacity and/or energy by market-based rate sellers
be reported in their indicative screens.

•

Proposes to redefine the default relevant geographic market used to analyze market power for an independent
power producer with generation capacity located in a generation-only balancing authority area.

Comments on the proposed rule are due 60 days after publication in the Federal Register.
R-14-23

(30)