| Frequently Asked Questions |
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| A. How can a power marketer demonstrate lack of market power? |
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A. How can a power marketer demonstrate lack of market power? |
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A power marketer can demonstrate lack of market power through a declaratory statement that neither the power marketer nor its affiliates own or control generation or transmission, or have a franchised service area for the sale of electricity at retail.
If a power marketer or its affiliates own or control electric generation or transmission facilities, it is required to perform a market dominance study. [See Louisville Gas & Electric Company, 62 FERC 61,016 (1993)].
The applicant can demonstrate the lack of market power if it can show that it, together with its affiliates: (1) does not dominate the generation of power in the relevant market; (2) lacks the ability to block buyers from reaching other sellers using transmission facilities which it owns or controls; and (3) cannot erect or control any other barrier to market entry. |
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