An Open Access Distribution Tariff

An Open Access Distribution Tariff
Author: Joel B. Eisen
Publisher:
Total Pages: 59
Release: 2014
Genre:
ISBN:
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This Article proposes that the Federal Energy Regulatory Commission (FERC) consider promulgating an Open Access Distribution Tariff (OADT) to open the nation's electric grid to new products and services at the consumer (distribution) level. Design of the OADT would be comparable to the Open Access Transmission Tariff that the FERC has used previously to open the nation's transmission wires. This Article argues that an OADT is necessary to create a smart electricity network that would be national, multimodal, and interactive. There is no smart electricity network at present, and there are numerous barriers to the development of open networking, such as obstacles to open access, lack of consumer demand for such a network and its products, resistance of incumbent utilities, and a variety of other factors. An open access principle will likely be necessary, but the timing of such regulation is of critical importance. This Article argues that regulatory establishment of an open access principle will eventually be necessary -- and to assess when open access might be desirable, this Article examines the revolutionary transformations that took place in three regulated industries: telecommunications, electricity restructuring, and finance.This Article examines key near-term and long-term questions involving an OADT's timing and development by analyzing these regulated industries using three criteria: (1) signifiers of when a transition would be necessary and conditions that might make open access more desirable to industry actors, (2) regulatory prerequisites necessary in the near term, and (3) risks involved in drawing lessons from the specific regulatory transformation (including federalism concerns). This Article concludes that rather than waiting for an organic transformation of the electric grid and evolution of open networking, a deliberate path of preparatory work will best set the foundation for open access.

Regulation in Practice

Regulation in Practice
Author: Anjali Garg
Publisher: The Energy and Resources Institute (TERI)
Total Pages: 257
Release: 2007-01-01
Genre: Business & Economics
ISBN: 8179931277
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This publication focuses on the impact of tariff orders (distribution) issued by nine SERCs (state electricity regulatory commissions) in India during 2003/04, 2004/05, and 2005/06. The states covered are Andhra Pradesh, Assam, Delhi, Jharkhand, Kerala,Madhya Pradesh, Maharashtra, Uttarakhand, and West Bengal. The analysis has been undertaken based on data and information available up to January 2007. The book assesses whether the orders have resulted in reducing regulatory uncertainty and information asymmetry, and led to better performance of the distribution utilities. Different indicators have been used to assess the impact on consumption and access, efficiency, financial performance, competition, and consumer-related issues in the power sector of these states. In addition, various parameters have been studied to assess whether the regulatory systems follow the principles of good regulation in these nine states. br>The commercial loss (without subsidy) incurred by state power utilities increased from Rs 197 220 million in 2003/04 to Rs 221 290 million in 2004/05. In view of the huge losses being incurred by the utilities, the tariff determination function forms a central part of the reform process. A comprehensive survey of tariff orders issued by these SERCs for the distribution licensees has been undertaken to evaluate the effectiveness of regulatory orders in the electricity sector. It assesses whether the orders have resulted in reducing regulatory uncertainty and information asymmetry and better performance of the distribution utilities. However, tariff orders are only one index of effectiveness of the regulatory commissions. It is recognized that there are many other important functions of the SERCs besides tariff-setting, and some of them have also been covered in this study.In addition, other documents available in the public domain, including the Power Sector Rating Report, prepared by the Ministry of Power, Annual Report on the Regulation in practice: impact of tariff orders on the Indian electricity sector Working of State Electricity Boards and Electricity Departments, 1 and the Report on Restructuring of APDRP (Accelerated Power Development and Reform Programme),2 were also studied.