• FERC Opens Inquiry on Revising Market Power Standards in Light of Revised DOJ/FTC Merger Guidelines
  • April 6, 2011 | Author: William L. Massey
  • Law Firm: Covington & Burling LLP - Washington Office
  • FERC recently issued a Notice of Inquiry (NOI) seeking comments on whether the agency should revise its approach for assessing horizontal market power in wholesale electricity markets when evaluating mergers and acquisitions and when evaluating whether to grant authority to make sales at market based rates. This inquiry is prompted by August 2010 revisions to the Horizontal Merger Guidelines by the Department of Justice (DOJ) and the Federal Trade Commission (FTC). FERC uses the old 1992 Guidelines’ analytical framework and thresholds for indicating whether horizontal market power is a concern. The 2010 Guidelines adopt somewhat less stringent thresholds and place less emphasis on analyzing market structure.