FERC's Order 890 on Transmission Access and Charges

Fri Mar 09 12:33:44 EST 2007
By Michael Rosenzweig and Sarah Voll

On 16 February 2007, the Federal Energy Regulatory Commission (FERC) issued Order No. 890 on the regulation of electricity transmission access and charges. The latest order builds on a decade of experience with Orders 888 and 889 (the FERC’s previous attempts to open up transmission access). Here, Mike Rosenzweig and Sarah Voll summarize the most important facets of the new Rule and describe the progress the FERC would now like to see. They conclude that the reform of pricing is likely to promote efficiency, but also identify two aspects of the FERC’s vision which will entrench inherent conflicts: vertical integration and the "contract path" model of access.  

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