FERC Addresses Uncertainty Around Simultaneous Locational Exchanges


On February 16, the Federal Energy Regulatory Commission (FERC) determined that simultaneous locational exchanges of wholesale electric power require prior FERC approval when the exchange involves the merchant function of a public utility transmission provider and its affiliated transmission provider’s transmission system. FERC’s decision addresses uncertainty with respect to whether simultaneous locational exchanges include the provision of transmission service or are instead solely wholesale power sales. FERC determined that simultaneous locational exchanges that involve a merchant function’s affiliated transmission system may enable the merchant function to perform transmission functions. For that reason, such exchanges require prior FERC approval following a case-by-case evaluation; exchanges that do not involve an affiliated transmission system are considered wholesale power sales that do not require such an evaluation.

The case originated when Puget Sound Energy, Inc. (Puget Sound) filed a petition for declaratory order requesting that FERC find that simultaneous locational exchanges of electric power are wholesale power sales rather than transmission transactions subject to the terms and conditions of an Open Access Transmission Tariff (OATT). In its petition, Puget Sound defined simultaneous locational exchanges of electric power as...

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morgan Lewis | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.