Energy Regulations and Policy Flashcards
6 cards from real Energy and Utilities practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Energy Regulations and Policy flashcards as text
What is a Regional Transmission Organization (RTO) or Independent System Operator (ISO)?
Answer: An independent entity that manages the electric transmission grid and wholesale markets in a region
RTOs and ISOs are independent organizations that operate transmission systems, administer competitive wholesale markets, and ensure reliability across regions.
What is a 'general rate case' in state utility regulation?
Answer: A comprehensive regulatory proceeding to set a utility's rates for the coming years
A general rate case is a formal proceeding before a state public utility commission to determine the rates a regulated utility may charge customers.
What does the Clean Power Plan / EPA's power sector greenhouse gas rules primarily aim to do?
Answer: Reduce CO2 emissions from existing and new power plants
EPA power sector rules under the Clean Air Act target CO2 and other greenhouse gas emissions from electric generating units to address climate change.
What is 'fuel adjustment clause' or 'energy cost adjustment' on a utility bill?
Answer: A bill component that passes through changes in fuel costs directly to customers
Fuel adjustment clauses allow utilities to recover actual fuel and purchased power costs from customers outside the normal rate case process.
Under US law, who has jurisdiction over retail electricity rates paid by consumers?
Answer: State public utility commissions (PUCs)
Retail electricity rates are regulated by state public utility commissions, while FERC has jurisdiction over wholesale and interstate transmission rates.
What is an 'integrated resource plan' (IRP) for electric utilities?
Answer: A long-term plan showing how a utility will meet future energy and capacity needs
An IRP is a long-range planning document that evaluates the mix of supply-side and demand-side resources to reliably and cost-effectively serve future load.