• FERC Refuses to Loosen Market Power Standards for Electric Mergers and Rates and Proposes New Gas Pipeline Business Standards for Gas-Electric Industry Coordination
  • March 6, 2012 | Author: William L. Massey
  • Law Firm: Covington & Burling LLP - Washington Office
  • At its recent public meeting, the Federal Energy Regulatory Commission (FERC) terminated an inquiry proceeding and reaffirmed its current approach to evaluating market power in wholesale electricity markets. In doing so, FERC declined to adopt guidelines for assessing the competitive impacts of mergers issued jointly by DOJ and FTC in 2010. Those guidelines differ somewhat from FERC’s current practice and would tolerate a higher degree of market concentration. FERC also proposed new business practice standards for natural gas pipelines. The proposals include new standards for gas-electric industry coordination, which has become a major policy issue in light of the increasing number of natural gas-fired electric generating facilities in the U.S.