![]() Therefore, while state commissions may regulate the price, terms and conditions associated with retail electricity from franchised public utilities, state commissions typically do not regulate electricity prices from competitive suppliers (although they typically license the suppliers and impose other conditions on them).This paper presents insights and perceptions of stakeholders involved in the development and implementation of residential smart grid pilot projects in the Netherlands, adding to the limited information that is currently available in this area, while expectations about the potential benefits of smart grids are high. Instead (under state law) they can purchase electricity at market-based rates from competitive suppliers (other than a franchised public utility, although the latter may arrange default supplies). Retail customers with retail choice are not charged for the commodity of electric energy under "cost-based rate regulation". In retail choice states, retail customers can choose between the franchised public utility serving their territory and other competitive suppliers when purchasing electricity. ![]() The scope of this jurisdiction depends on whether the state has authorised retail choice (that is, retail competition) or not. State public utilities commissions have jurisdiction over the supply of electricity to end users. This makes them exempt from certain reporting and accounting requirements that otherwise apply to their operations. Independent power producers typically operate as qualifying facilities under PURPA, or sell only at wholesale so that they qualify as "exempt wholesale generators" under the Public Utility Holding Company Act of 2005. Additionally, under PURPA, certain eligible generators (referred to as qualifying facilities) can receive special rate and regulatory treatment if they continue to meet eligibility criteria (including compliance with operating and efficiency standards). This authorisation is usually given to sell energy and capacity at market-based rates if the generator does not have (or has mitigated) market power. For example, generators must obtain authorisation from the FERC to sell their output at wholesale. Generators seeking to participate in an organised wholesale market (that is, sell power into an ISO/RTO) must also comply with FERC's standards and the ISO's/RTO's FERC-approved tariff. Generators must also satisfy applicable NERC requirements. Local governments cannot issue certificates, but they often can reject some or all aspects of a proposed project if they find that the project will violate local land use or other ordinances.Īt the federal level, hydroelectric facilities are bound by the terms set out in their FERC-issued licenses and applicable FERC regulations. As part of the process of obtaining a CPCN, a developer must also usually obtain permits from various federal or state agencies to comply with environmental or cultural resource requirements. The CPCN authorises the project developer to construct the facility with the specifications set out in the CPCN. If the state public utilities commission finds that a proposed project complies with the relevant state utility laws and standards, the commission will generally issue what is commonly referred to as a Certificate of Public Convenience and Necessity (CPCN). State public utilities commissions are generally responsible for granting or denying developers authorisation to construct electric generation facilities. Siting and construction of electric generation facilities (with the exception of commercial nuclear and hydroelectric facilities) are regulated at the state and local levels.
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