States gearing up to challenge US FERC interconnection rule

Washington (Platts)--27Apr2004

The National Assn of Regulatory Utility Commissioners, claiming that the US
Federal Energy Regulatory Commission overstepped its authority, is planning to
take FERC to court over its recently finalized generator interconnection
rulemaking, an official said Tuesday. FERC violated the Federal Power Act by
asserting jurisdiction over local- and dual-use distribution facilities when
it issued its final interconnection rule last month, NARUC Assistant General
Counsel Grace Delos Reyes said. NARUC, which represents state public service
commissions, will file the appeal next week, and is currently polling its
members to see how many will sign the petition, Delos Reyes said. FERC, in its
interconnection rule, said it would assert authority over a distribution
facility when one is used by a wholesale customer engaged in interstate
commerce. According to NARUC, the Federal Power Act explicitly delegated
authority over all distribution facilities to the states.

This story was first published in Platts real-time news and market reporting
service Platts Electricity Alert (http://electricityalert.platts.com ).

Copyright © 2004 - Platts, All Rights Reserved