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<br />Background <br /> <br />Section 2 <br /> <br />and transmission rates are subject to review by the Federal Energy Regulatory Commission <br />(FERC) pursuant to a delegation order, and it is subject to the open access provisions of <br />Section 211 of the Energy Policy Act (EPAct) of 1992. <br /> <br />~ <br />I <br /> <br />2.4.1 ENERGY POLICY ACT SEC 211, 212 & 213 <br /> <br />Prior to enactment of the EPAct, FERC's authority to order an electric utility to provide <br />transmission service was extremely limited and was not applicable to federal power <br />marketing agencies. Under most circumstances, this meant that a transmission owner did <br />not have to provide a requested service and did so on essentially a voluntary basis. If an <br />investor-owned utility agreed to provide service, the FERC regulated the rates for the <br />service. <br /> <br />The EPAct amended the Federal Power Act, including the following revisions to sections <br />211 and 212, and adding 213: <br /> <br />"SEC. 211. <br />(a) Any electric utility, Federal power marketing agency, or any other <br />person generating electric energy for sale for resale, may apply to the <br />Commission for an order under this subsection requiring a transmitting <br />utility to provide transmission services (including any enlargement of <br />transmission capacity necessary to provide such services) to the <br />applicant... [t]he Commission may issue such order if it finds that such <br />order meets the requirements of section 212, and would otherwise be in <br />the public interest... . <br /> <br />SEC. 212. <br />(a) RATES, CHARGES, TERMS, AND CONDmONS FOR WHOLESALE <br />TRANSMISSION SERVICES - An order under section 211 shall require <br />the transmitting )Jtility subject to the order to provide wholesale <br />transmission services at rates, charges, terms,and conditions which <br />permit the recovery by such utility of all costs incurred in connection <br />with the transmission services and necessary associated services... [and] <br />shall promote the economically efficient transmission and generation of <br />electricity and shall be just and reasonable... <br /> <br />SEC. 213. INFORMATION REQUIREMENTS <br />(a) · · · <br />(b) TRANSMISSION CAPACITY AND CONSTRAINTS ...the Commission <br />shall promulgate a rule requiring that information be submitted annually <br />to the Commission by transmitting utilities which is adequate to inform <br />potential transmission customers, State regulatory authorities, and the <br />public of potentially available transmission capacity and known <br />constraints. .. <br /> <br />These sections provide authority to the FERC to .order transmission service in the interest <br />of maximizing efficient use of transmission and generation, at rates that are compensatory. <br />This expands the FERC's traditional authority to include publicly-owned utility systems <br />and PMAs (including Western), and is causing profound changes to the FERC's policies <br /> <br />March 1998 <br /> <br />Western Area Power Administration 2-13 <br /> <br />