Energy and Utilities Energy Regulations and Policy 2

Question 1

What is a Regional Transmission Organization (RTO) or Independent System Operator (ISO)?

Accepted Answer

An independent entity that manages the electric transmission grid and wholesale markets in a region

Answer

RTOs and ISOs are independent organizations that operate transmission systems, administer competitive wholesale markets, and ensure reliability across regions.

Question 2

What is a 'general rate case' in state utility regulation?

Accepted Answer

A comprehensive regulatory proceeding to set a utility's rates for the coming years

Answer

A general rate case is a formal proceeding before a state public utility commission to determine the rates a regulated utility may charge customers.

Question 3

What does the Clean Power Plan / EPA's power sector greenhouse gas rules primarily aim to do?

Accepted Answer

Reduce CO2 emissions from existing and new power plants

Answer

EPA power sector rules under the Clean Air Act target CO2 and other greenhouse gas emissions from electric generating units to address climate change.

Question 4

What is 'fuel adjustment clause' or 'energy cost adjustment' on a utility bill?

Accepted Answer

A bill component that passes through changes in fuel costs directly to customers

Answer

Fuel adjustment clauses allow utilities to recover actual fuel and purchased power costs from customers outside the normal rate case process.

Question 5

Under US law, who has jurisdiction over retail electricity rates paid by consumers?

Accepted Answer

State public utility commissions (PUCs)

Answer

Retail electricity rates are regulated by state public utility commissions, while FERC has jurisdiction over wholesale and interstate transmission rates.

Energy and Utilities Practice Test

Energy and Utilities Practice Test

Energy and Utilities Energy Regulations and Policy 2