Energy Industry Updates For January 2011
Mondaq Business Briefing › United States Law Articles in English (2011)
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Energy Industry Updates For January 2011
FERC Denies Rehearing and Affirms Order on California's Feed-In Tariff Proposal
FERC recently clarified federal preemption issues involved with state feed-in tariff programs in an order denying a rehearing request by several California utilities and the Edison Electric Institute (EEI) regarding California's proposed feed-in tariff program. The decision confirms that states can combine their authority to set avoided cost rates with their authority to set energy procurement requirements for state utilities. This combination allows states to set avoided cost pricing with reference to a specific class of generators, essentially permitting the development of certain types of feed-in tariffs. The California utilities argued that no notice was provided to the public that avoided cost pricing and/or the effect of purchase mandates on such pricing would be the subject of the case. The California utilities also objected to FERC's determination that the concept of a multi-tiered avoided cost rate structure could be consistent with the avoided cost rate requireme...See the full content of this document
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