particular company or utility. Tariffs include General Terms and Conditions along with a copy of each form of . goal in to remove service agreement.” FERC’s requiring OATTs “was impediments to competition in the wholesale bulk power marketplace and to bring more efficient, lower cost power to the electricity . Nation’s consumers.” What is standard market design? Standard market design was an attempt by Congress to standardize the national electrical grid and ensure interconnectability. Standard market to correct a number of problems in the design was FERC’s attempt wholesale power markets and involved a single tariff applicable to any entity transmitting in the interstate grid. Standard market design is new mandatory reporting system for electricity FERC’s generators and transmitters; the new system requires a standard form for reporting. Standard market design is an optional regulatory scheme regional transmission facilities may adopt in order to better facilitate FERC oversight and infrastructure coordination. Answer: B. Standard market design (SMD) was attempt to correct various problems in the FERC’s wholesale power in needed transmission, generation siting markets, including “under-investment in locations far from customers, unduly discriminatory behavior by transmission providers against independent generators, and fundamental design flaws in certain existing electricity . SMD plan involved a compressive hodgepodge of systems and programs markets.” FERC’s including the use of a single OATT applicable to all transmission on the interstate grids; transmission service provided exclusively by Independent Transmission Providers (ITPs); input by state regulators on Regional State Advisory Committees (RSACs); standards development support from the North American Energy Standards Board (NAESB); a single transmission service called the Network Access Service (NAS); transmission customers would pay based usage charges covering the costs of transmission congestion in accordance with new Locational Marginal Pricing (LMP) and Congestion Revenue Rights (CRRs) programs; among others. . ITPs would have no direct or indirect interest in the electricity market (hence and would be required to meet certain governance requirements as prescribed by “independent”) FERC. The RSAC component of SMD was an attempt to involve states in the post-SMD Id.
particular company or utility. Tariffs include General Terms and Conditions along with a copy of each form of service agreement.” . FERC’s goal in requiring OATTs “was to remove impediments to competition in the wholesale bulk power marketplace and to bring more efficient, lower cost power to the Nation’s electricity consumers.” . What is standard market design? Standard market design was an attempt by Congress to standardize the national electrical grid and ensure interconnectability. Standard market design was FERC’s attempt to correct a number of problems in the wholesale power markets and involved a single tariff applicable to any entity transmitting in the interstate grid. Standard market design is FERC’s new mandatory reporting system for electricity generators and transmitters; the new system requires a standard form for reporting. Standard market design is an optional regulatory scheme regional transmission facilities may adopt in order to better facilitate FERC oversight and infrastructure coordination. Answer: B. Standard market design (SMD) was FERC’s attempt to correct various problems in the wholesale power markets, including “under-investment in needed transmission, generation siting in locations far from customers, unduly discriminatory behavior by transmission providers against independent generators, and fundamental design flaws in certain existing electricity markets.” . FERC’s SMD plan involved a compressive hodgepodge of systems and programs including the use of a single OATT applicable to all transmission on the interstate grids; transmission service provided exclusively by Independent Transmission Providers (ITPs); input by state regulators on Regional State Advisory Committees (RSACs); standards development support from the North American Energy Standards Board (NAESB); a single transmission service called the Network Access Service (NAS); transmission customers would pay usage charges covering the costs of transmission congestion in accordance with new Locational Marginal Pricing (LMP) and Congestion Revenue Rights (CRRs) programs; among others. . ITPs would have no direct or indirect interest in the electricity market (hence “independent”) and would be required to meet certain governance requirements as prescribed by FERC. Id. The RSAC component of SMD was an attempt to involve states in the post-SMD based
Wellborn%20-%20Electric%20Power%20Regulation%20vs%20Markets%20Q&A.docx