Where is the line between federal and state jurisdiction on electricity?

ROCKVILLE, Md. - June 29, 2016 - PRLog -- State and federal jurisdictions often lead to some friction and the case of the economic regulation of electricity is no different, especially in the restructured markets.

States that turned to the markets to run their generation now split significant authority with the Federal Energy Regulatory Commission (FERC). The states can approve or deny where generation gets built and its environmental requirements but when they have tried to back it economically, they have run into FERC action and sometimes federal lawsuits.

One of the longest running disputes was put to bed by the Supreme Court this April when it affirmed the lower courts' findings that Maryland exceeded its authority in backing a new gas plant with a contract for differences. The ruling also effectively ended New Jersey's similar program from the same time.

Since the state plans for those plants were hatched, the price of natural gas has dropped and that has led to more disputes over whether and how to keep baseload power plants open. FERC is reviewing proposed power purchase agreements between two Ohio utilities and their affiliates.

Meanwhile American Electric Power (AEP) and FirstEnergy have asked the Public Utilities Commission of Ohio (PUCO) to approve their "plan Bs" and the first firm is exploring some kind of possible re-regulation in the state. Ohio is not the only state trying to keep open power plants, however. Both Illinois and New York have considered ways to keep aging nuclear plants open.

New England has long-standing issues with the price of natural gas in the winter and its states are weighing whether to back new pipelines with electric rates. They are also considering long-term contracts for hydroelectricity from Canada. Those actions have drawn opposition from power generators, while environmentalists and other opponents to natural gas oppose the pipeline idea.

It would be easier to come up with states that are not interested in backing power plants in ways that wholesale power markets do not. The issue is obviously not over, despite the Supreme Court's finding in the Hughes case.

Attend Power Markets Today's webinar titled "Where is the line between federal and state jurisdiction on electricity?" to be held on Thursday, June 30, from 2-3:30 PM Eastern US time to learn where the debate on federal versus state jurisdiction is after some major recent developments and get an idea for the future of this issue. Call +1-301-769-6812 (1-888-637-7776 toll-free in the US and Canada) or visit http://www.powermarketstoday.com/Where-is-the-line-between-federal-and-state-jurisdiction-on-electricity-webinar.html to register. To download the recording when it is available, please visit http://www.powermarketstoday.com/products/department4.cfm.

KEY LEARNING POINTS

• How have the Supreme Court's recent rulings in the EPSA and Hughes cases impacted this issue?

• Now that the EPSA and Hughes cases are in the past, what other specific issues are bubbling up now?

• Are the major changes the industry is starting to go through going to lead to more of these types of cases?

• How will the move to a more distributed power system play out jurisdictionally?

• What impact will "top down" programs to address climate change such as the Clean Power Plan have on jurisdictional issues?

• Ask your own questions and get advice from the panel, tailored to your specific needs, when we open up the phone lines for live Q&A from the audience.

DISTINGUISHED SPEAKERS

• Katie Scharf Dykes, Deputy Commissioner for Energy,  Connecticut Department of Energy & Environmental Protection (CT DEEP)

• John Moore, Senior Attorney, Sustainable FERC Project

• Dan Shields, Director of Analytical Services, Office of the Ohio Consumers' Counsel

• John Shelk, President and CEO, Electric Power Supply Association

About Power Markets Today

Power Markets Today's mission is to deliver exclusive news chronicling ongoing efforts to build competitive wholesale and retail utility markets with in-depth analysis on why some fail and others succeed. Power Markets Today is published 245 times a year by Modern Markets Intelligence Inc. (MMI). For a 14-day, risk-free trial, visit https://www.powermarketstoday.com/public/14day-Free-Trial.cfm.

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