Electricity Regulation

Although the Federal Energy Regulatory Commission (FERC) has tried to cut the time required to process electric power applications, further improvements are possible. FERC is responsible for regulating the rates, the terms, and the conditions of proposed wholesale electricity transactions--a growing portion of the nation's electricity business--as well as mergers and other deals among utilities. These improvements are especially important considering the potential increased workload arising from the Energy Policy Act. FERC's management information system could be upgraded to give agency managers more-specific information with which to spot problems and assess performance. By examining the information exchanged by applicants and FERC staff at the initial filing stage, FERC could determine if changing policy statements or filing requirements would reduce the number of incomplete applications. Alternative resolution techniques could reduce the need for time-consuming trial-like hearings. Similar techniques could help applicants settle disputes before submitting applications to FERC.