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
Which landmark US law restructured wholesale electricity markets and mandated open-access transmission?
Answer: Energy Policy Act of 1992
The Energy Policy Act of 1992 promoted competition in wholesale power markets and required open-access transmission, paving the way for deregulation.
What does PURPA (Public Utility Regulatory Policies Act of 1978) primarily require utilities to do?
Answer: Purchase power from qualifying small power producers and cogenerators at avoided cost
PURPA requires utilities to buy power from qualifying facilities (QFs) at the utility's avoided cost, fostering independent power producers.
What is 'rate base' in utility regulation?
Answer: The value of utility assets on which regulators allow the utility to earn a return
Rate base is the value of a utility's invested capital — plant, equipment, and working capital — on which regulators permit it to earn an approved rate of return.
What is a 'certificate of public convenience and necessity' (CPCN) in the utility industry?
Answer: A regulatory approval required before constructing major utility infrastructure
A CPCN is a state or federal regulatory authorization required before a utility may construct major new facilities like pipelines or power lines.
What does 'decoupling' mean in utility regulation?
Answer: Breaking the link between utility revenue and the volume of energy sold
Decoupling removes the disincentive for utilities to promote energy efficiency by separating their revenue recovery from the amount of energy sold.
Which US government agency publishes the Annual Energy Outlook and Short-Term Energy Outlook?
Answer: EIA
The Energy Information Administration (EIA) is the federal statistical agency responsible for collecting, analyzing, and disseminating energy information.