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FERC Targets Six Utilities' Market Power



The Federal Energy Regulatory Commission (FERC) Wednesday told six big U.S. utilities that they have the ability to unfairly sway power prices in some of their home territories and ordered them to take remedial action.




The Federal Energy Regulatory Commission (FERC) Wednesday told six big U.S. utilities that they have the ability to unfairly sway power prices in some of their home territories and ordered them to take remedial action.

The FERC said units of six utilities failed at least part of an initial market power test the agency proposed this year to promote competition.

The companies include Alliant Energy Corp., American Electric Power Co. and Duke Energy Corp.

Entergy Corp., Southern Co. and Kansas City Power and Light Co., a unit of Great Plains Energy Inc., were also named by regulators.

The FERC gave the companies 60 days to propose ways to dilute their market dominance, or forfeit their right to sell electricity at market-based rates.

Future power sales by the utilities will be subject to refunds until the market power issues are resolved, the FERC said.




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  posted on 12/16/2004   Article Use Policy




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