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The Federal Water Power Act of 1920 created the Federal Power Commission
(FPC), but the Commission was under the joint authority of the secretaries of War, Agriculture, and the Interior.
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Meanwhile in American history...
The Model T accounts for half of American car sales. |
In 1928, Congress
grants the FPC its own funding and enables it to have its
own staff, independent of the three executive departments.
The Federal Power Act of 1930 established the commission
as a five member, bi-partisan organization.
Meanwhile in American history...
Pluto is discovered by scientists. |
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In 1934, the FPC
was directed by Congress to conduct a survey of electric
rates throughout the country. The Commission also began
its first National Power Survey, analyzing the growth of
the nation's electric utilities.
The Federal Power Act of 1935 expanded the FPC's
mission. The FPC began to integrate local utilities
into regional systems to increase efficiency.
Meanwhile in American history...
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The AFL-CIO
is created in response to the National Labor Relations
Act (The Wagner Act). |
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The Natural Gas Act of 1938 gave the FPC jurisdiction over the natural gas pipeline
industry. FERC was charged with regulating the sale and
transportation of natural gas.
In the 1940s, America
underwent a rapid expansion of natural gas storage and pipeline
construction. The FPC struggled to keep up with the flood
of applications related to the transmission of natural gas.
Numerous abbreviated hearing and processing techniques were
employed to cope with the overabundance of applications.
Meanwhile in American history...
FDR and Churchill meet during World War II. |
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Phillips Petroleum Co.
v. Wisconsin, 1954. This Supreme Court decision
resulted in an expansion of the FPC's jurisdiction, and
in the aftermath of the decision, natural gas applications
under the Natural Gas Act exploded, far exceeding the volume
of electrical and hydroelectric regulation handled by the
FPC.
In 1955, the FPC institutes "Area-Rates," which set uniform rates
for all distributors in a region.
Meanwhile in American history...
The polio vaccine created by Dr. Jonas Salk is considered safe to use. |
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In December of 1960,
James M. Landis turned in a report on all the Federal Regulatory
Agencies to president-elect Kennedy. The Landis report criticized
the FPC for being inefficient and too pro-utility.
In 1961, the FPC
instituted new policies to further streamline the application
process. The country was divided into 23 "producing
areas," each with its own price ceiling.
Meanwhile in American history...
The Peace Corps is founded by President John F. Kennedy.
In 1964, through
regional pricing techniques, staff increases, and their
first-ever use of computers, the FPC was able to cut the
average time for gas pipeline approval from 12 down to 7
weeks.
In 1970, the task of coordinating federal efforts to cope with electricity
shortages was taken from the FPC and given to the Office of Emergency Preparedness.
Meanwhile in American history...
The Environmental Protection
Agency (EPA) is created by Congress. |
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In 1971, concerned
with dwindling reserves of natural gas, the FPC raised price
ceilings in an effort to stimulate production.
In 1977, the FPC
was converted into FERC. While FERC initially faced all
of the same challenges as the FPC, fundamental changes in
the industries that FERC regulated and major paperwork-reduction
initiatives would soon simplify the regulatory process.
In 1978, the National
Energy Act, which includes the Public Utility Regulatory
Policies Act (PURPA), was passed. This Act was a response
to the OPEC oil embargo of the 1970's. While the law initially
increased FERC's workload by unifying the intrastate and
interstate gas markets, it also provided for the gradual
deregulation of Natural Gas. At that time, a major component
of FERC's work burden was setting the prices for interstate
natural gas on a year-by-year basis.
Meanwhile in American history...
The Camp David Accords are signed creating peace between Egypt and Israel.
In the early 1980's FERC's workload continued to expand as the agency faced
the challenge of trying to enhance the nation's energy self-sufficiency.
As usual, regulatory reform focused on creating simpler
approval procedures and eliminating direct oversight of
utilities. Blanket gas certifications were implemented during
this period, and more authority was delegated to the regional
directors.
Meanwhile in American history...
President Ronald Reagan is elected and serves two terms. |
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The
Energy Policy Act of 1992 was passed. This Act encouraged
FERC to foster competition in the wholesale energy markets
through open access to transmission facilities.
In 1996, FERC issued
a series of orders designed to foster competition through
better access to transmission facilities. As a result, while
a single company might own the transmission facilities,
the commodity being carried (gas or electricity) would be
available from a variety of suppliers, who would be competing
with one another for customers.
Meanwhile in American history...
The 100th Olympics is held in Atlanta, Georgia.
On August 8, 2005, the Energy Policy Act of 2005 (EPAct) was signed into law. EPAct was the first major energy law enacted in over a decade, and makes the most significant changes in Commission authority since the Federal Power Act and Natural Gas Act. By passing the EPAct, Congress signaled a strong vote of confidence in the Commission. EPAct had three general policy goals in the areas of concern to the Commission. First, it reaffirmed a commitment to competition in wholesale power markets as national policy, the third major federal law in the last 30 years to do so. Second, it strengthened the Commission’s regulatory tools, recognizing that effective regulation is necessary to protect the consumer from exploitation and assure fair competition. Third, it provided for development of a stronger energy infrastructure.
2007
– The Commission concluded that the existing Open Access Transmission Tariff (OATT) provided an opportunity to engage in undue discrimination and preference in transmission service, and acted to prevent that undue discrimination and preference. The rule prevents undue discrimination and preference by increasing the transparency of Open Access Transmission Tariff administration. The rule requires an open, transparent, and coordinated transmission planning process that will consider the needs of native load customers of transmission customers as well as transmission providers. With this rule in place, it will now be possible to pry open the black box that has frustrated transmission customers for so long.
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