FERC Proposes Focused Reforms to Improve Organized Wholesale Electricity Markets

On February 26, 2008 the Washington office authored an alert memorandum entitled “FERC Proposes Focused Reforms to Improve Organized Wholesale Electricity Markets”. The three page memo discusses FERC’s recently proposed rule-making, which is intended to improve the function of the wholesale organized electricity markets (“RTO” and “ISO” markets). The four major components of the proposed rule consist of demand response and market pricing during periods of reserve shortage; long-term power contracting; market-monitoring policies; and responsiveness to stakeholders and customers. Compliance requirements would be implemented through tariff revisions to the wholesale electricity markets, which will require a series of future proceedings after the final rule is issued.