July 6, 2011 FERC Proposes Rule to Facilitate Electricity Market Transparency

<DIV><SPAN style="FONT-SIZE: small"><SPAN style="FONT-FAMILY: Verdana">The proposal would give FERC and the public a more complete picture about how prices are established or formed by bilateral transactions in the wholesale electricity markets. It also would improve FERC's ability to monitor wholesale electricity markets for market power and manipulation. FERC is taking this step under authority granted in the Energy Policy Act of 2005. </SPAN></SPAN></DIV> <DIV><SPAN style="FONT-SIZE: small"><SPAN style="FONT-FAMILY: Verdana">Currently, public utilities must file EQRs summarizing contractual terms and conditions in their agreements for cost-based and market-based rate sales and transmission service, as well as transaction information for cost-based and market-based rate sales and transmission capacity reassignments. Today's Notice of Proposed Rulemaking (NOPR) would extend those requirements to non-public utilities with annual wholesale sales of more than 4 million megawatt hours (MWh) and to non-public utility balancing authorities with 1 million MWh or more in annual wholesale sales. </SPAN></SPAN></DIV> <DIV><SPAN style="FONT-SIZE: small"><SPAN style="FONT-FAMILY: Verdana">In addition to proposing that these non-public utilities file EQRs, the NOPR would refine the reporting requirements by directing all filers to, among other things: report the transaction date, time and type of rate; indicate whether the transaction was reported to an index publisher; identify any broker or exchange used for a sales transaction; and report electronic tag ID data.&nbsp;</SPAN></SPAN></DIV> <DIV><SPAN style="FONT-SIZE: small"><SPAN style="FONT-FAMILY: Verdana">The reporting requirements are likely to be in XML format.&nbsp; More to come after the EQR technical Conference Call with FERC on Wednesday July 13, 2011.</SPAN></SPAN></DIV>