Impact of The Energy Policy Act of 1992
The Energy Policy Act of 1992 (EPAct) laid the initial foundation for the eventual deregulation of the North American electricity market. This Act called for utility companies to allow external entities fair access to the electric transmission systems in North America. The act's intent was to allow large customers (and in theory, every customer) to choose their electricity supplier and subsequently pay for the transmission to deliver it from the generation to serve their load.
Based on the premise that new generating facilities would be allowed fair access to their regional transmission system, and precipitated by the EPAct of 1992, construction of new independently-owned generation assets began in response to the development of the North American electricity market. Recognizing competition was coming, electric utility companies began modifying their scheduling functions by forming affiliated Power Marketing departments. Similarly, financial trading interests and existing energy companies (outside of electricity) saw the opportunities in the emerging electricity market and began to organize unaffiliated power marketing divisions. With open access, anyone with the proper resources and/or creditworthiness could purchase the rights to generation, move it across the transmission network (provided adequate capacity was available), and deliver it to a place of higher demand.
Following passage of the EPAct of 1992, independent generation owner/operators (also called independent power producers or IPPs) and unaffiliated power marketers lodged frequent complaints with FERC about unfair treatment under the new open access requirements. The complaints generally followed the same theme: vertically integrated electric utility companies would favor their own affiliated power marketing division over external parties trying to move power on the system. In many cases, the power marketers operated side by side with the transmission operators (or it might even be the same person) and there were no rules to prevent unfair treatment of external transmission system users.
Read more about this topic: Open Access Same-Time Information System
Famous quotes containing the words impact of the, impact of, impact, energy, policy and/or act:
“The question confronting the Church today is not any longer whether the man in the street can grasp a religious message, but how to employ the communications media so as to let him have the full impact of the Gospel message.”
—Pope John Paul II (b. 1920)
“The question confronting the Church today is not any longer whether the man in the street can grasp a religious message, but how to employ the communications media so as to let him have the full impact of the Gospel message.”
—Pope John Paul II (b. 1920)
“The question confronting the Church today is not any longer whether the man in the street can grasp a religious message, but how to employ the communications media so as to let him have the full impact of the Gospel message.”
—Pope John Paul II (b. 1920)
“The tendencies of the times favor the idea of self-government, and leave the individual, for all code, to the rewards and penalties of his own constitution, which work with more energy than we believe, whilst we depend on artificial restraints.”
—Ralph Waldo Emerson (1803–1882)
“’Tis our true policy to steer clear of permanent alliances with any portion of the foreign world.”
—George Washington (1732–1799)
“Since belief is measured by action, he who forbids us to believe religion to be true, necessarily also forbids us to act as we should if we did believe it to be true.”
—William James (1842–1910)