Fitch Ratings: FERC Standard Market Design Is Evolving.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 19, 2002 The Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. (FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability ) has demonstrated that it is willing to implement more variance in its uniform market design in order to gain broader acceptance among U.S. utilities, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. in a special report. The report explains that FERC orders approving the formation of three new regional transmission organizations  This August 2006 is in need of attention from an expert on the subject.Please help recruit one or [ improve this article] yourself. See the talk page for details. (RTOs) are steps along the path to broadening acceptance for standard market design. In response to strong opposition of the proposed rulemaking on July 31, 2002, FERC is carving out some special treatment for the three proposed RTOs in western and southeastern states. "It appears FERC will continue to press for the formation of larger, multistate mul·ti·state adj. Of, relating to, or involving several states: a multistate environmental campaign. transmission entities in all regions," said Ellen Lapson, Managing Director, Fitch Ratings. "During longer transition periods, however, the new RTOs will maintain some quirks that differ from the form of standard market design (SMD (1) (Storage Module Device) A high-performance hard disk interface used with minis and mainframes that transfers data in the 1-4 MBytes/sec range (SMD-E provides highest rate). See hard disk. ) that is rapidly evolving in the Northeast, the Midwest and Texas." "The full implementation of SMD will take time," said Lapson. "That being said, some sectors stand to benefit in the longer term from SMD, including the wholesale trading and merchant generating and developing sectors." Fitch expects that clarifying market rules and regulations for transmission grids will eventually facilitate further M&A activity of two types: spin-offs of transmission businesses and consolidation among generation companies or holding company groups. "The expanded size of individual regional markets and elimination of barriers at the boundaries between adjoining markets will favor consolidation. That will raise the bar on the size of firm that can operate in the marketplace without representing an excessive concentration in the relevant regional market," said Lapson. 'FERC Standard Market Design (Round Two)' is available on the Fitch Ratings web site at 'www.fitchratings.com' in the 'Global Power' page under 'Highlight Reports', or by contacting the Ratings Desk at 1-800-893-4824. |
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