Energy and Utilities Energy Regulations and Policy

Question 1

Which landmark US law restructured wholesale electricity markets and mandated open-access transmission?

Accepted Answer

Energy Policy Act of 1992

Answer

Clean Air Act

Answer

Public Utility Regulatory Policies Act (PURPA)

Answer

Federal Power Act

Question 2

What does PURPA (Public Utility Regulatory Policies Act of 1978) primarily require utilities to do?

Accepted Answer

Purchase power from qualifying small power producers and cogenerators at avoided cost

Answer

Install smart meters in all homes

Answer

Divest generation from transmission assets

Answer

Submit annual reliability reports to FERC

Question 3

What is 'rate base' in utility regulation?

Accepted Answer

The value of utility assets on which regulators allow the utility to earn a return

Answer

The minimum rate a utility can charge

Answer

The base load generation capacity

Answer

The regulatory filing fee

Question 4

What is a 'certificate of public convenience and necessity' (CPCN) in the utility industry?

Accepted Answer

A regulatory approval required before constructing major utility infrastructure

Answer

A worker safety certification

Answer

A customer service quality standard

Answer

An environmental permit from the EPA

Question 5

What does 'decoupling' mean in utility regulation?

Accepted Answer

Breaking the link between utility revenue and the volume of energy sold

Answer

Separating generation from transmission ownership

Answer

Removing smart meters from rate base

Answer

Disconnecting customers who don't pay bills

Question 6

Which US government agency publishes the Annual Energy Outlook and Short-Term Energy Outlook?

Accepted Answer

EIA

Answer

FERC

Answer

EPA

Answer

DOE Office of Science