Electric - Market-Based Rates
The Commission grants market-based rate authorization for wholesale sales of electric energy, capacity and ancillary services by public utility sellers that can demonstrate that they and their affiliates lack or have adequately mitigated horizontal and vertical market power. As a condition of market-based rate authority the Commission requires, among other things, certain restrictions governing the relationship between a market-regulated power sales affiliate and its franchised public utility affiliate with captive customers. Discussed herein are the following three most common types of filings made regarding electric market-based rate authority:
- Initial market-based rate applications
- Change in status reporting requirement filings
- Updated market power analyses
The Final Rule on Market-Based Rates For Wholesale Sales Of Electric Energy, Capacity And Ancillary Services By Public Utilities (Order No. 697 ), effective September 18, 2007, offers greater detail regarding the Commission’s policies applicable to electric market-based rate authorization. The Commission has also affirmed and clarified it's market-based rate policy in Order No. 697-A .
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