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Regulating Negawatts: How Does the Federal Power Act Handle Non-Sales of Electricity

February 17, 2016

The constant evolution and increasing sophistication of modern energy markets are straining the ability of the Federal Power Act to create meaningful distinctions between state and federal regulatory jurisdiction.

The Federal Power Act provides that the federal government has exclusive jurisdiction over wholesale power sales, whereas states have exclusive jurisdiction over retail power sales.  While this division of authority has endured admirably for almost a century, there is no denying that the legal framework first conceived in 1920 is now a poor match for the industry it is supposed to regulate.  Not only have the divisions between wholesale and retail sales become blurred, but conservation efforts....Read More

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