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Appeal Dealing with Calculation of Transmission Charges For Station Power

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By FindLaw Staff on May 04, 2010 4:57 PM

Southern Cal. Edison Co. v. FERC, No. 05-1327, involved a petition for review of the Federal Energy Regulatory Commission's (FERC) decision that the same method used for calculating transmission charges for station power must be used to calculate retail charges.  The court of appeals granted the petition, holding that FERC's authority did not preempt the state's authority to set the netting period for station power - i.e., the pricing mechanism - in the retail market or to allow utilities to impose consumption charges.

As the court wrote:  "FERC approved a tariff filed by the California Independent System Operator ("CAISO"), manager of California's electric power transmission grid. Southern California Edison petitions for review of that FERC order because the tariff permitted generators of electricity to avoid paying significant retail charges for the energy they used - whether self-generated or not - for their own heating, lighting, air conditioning and office equipment needs, called "station power." Petitioners assert that FERC, which has undoubted jurisdiction to regulate wholesale sales and transmission charges, has exceeded its authority by insisting that the same method used for calculating transmission charges for station power be used to calculate retail charges."

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