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Regulatory Law Keyed to Shapiro, 4th Ed.
New York v. Federal Energy Regulatory Commission
Citation:
535 U.S. 1 (2002)Facts
The electric power industry has evolved significantly since the FPA was enacted in 1935, transitioning from local monopolies to a nationwide competitive market. Technological advances have made it possible to generate electricity efficiently in different ways and transmit it over long distances through interconnected grids that cross state lines. Despite these advances, public utilities retained ownership of transmission lines needed by competitors to deliver electricity to customers. In 1996, FERC issued Order No. 888 to address discrimination in the wholesale electricity market by requiring utilities to provide open access to their transmission facilities. FERC extended this requirement to unbundled retail transmissions but declined to apply it to bundled retail transmissions, citing jurisdictional complexities and determining that such regulation was not necessary to remedy the discrimination identified in the wholesale market. New York challenged FERC’s assertion of jurisdiction over unbundled retail transmissions, while Enron challenged FERC’s refusal to assert jurisdiction over bundled retail transmissions.
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