2.0. ERMUSR 08-29-2018 - Laserfiche WebLink

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The other final rule, Order No. 889, (i) implements standards of conduct for jurisdictional utilities that off:r open access transmission services to ensure that transmission owners and their affiliates do not have an infair competitive advantage in using transmission to sell power, and (ii)requires those jurisdictional util ties to establish or use an electronic "Open Access Same-time Information System" ("OASIS") to sh.le transmission-related information (including information about available capacity) on the Internet, and to require that those jurisdictional utilities also obtain information about their transmission systems for their own wholesale power transactions, such as available capacity, in the same way that their co petitors do through the OASIS. In .007, the FERC issued Order No. 890 which, as modified and clarified on rehearing, updated Order No,. 888 and 889. Order 890 did not substantially change the requirements or jurisdictional reach of tho.e orders with respect to the Utility. Th: Utility, as a non jurisdictional utility, is not directly subject to Order No. 888, 889, and 890. Th: efore at this time, the Utility is unable to predict what effect, if any these rules will have on the Uti ity. En:rgy Policy Act of 2005 Th: Energy Policy Act of 2005 (the "2005 Act") made additional changes to the federal regulation of the ele.tric utility industry, some of which affect the Utility. Th- 2005 Act required the creation of an electric reliability organization that has authority to establish and enforce mandatory reliability standards on a nation-wide basis. The electric reliability organization is sub ect to FERC's oversight. FERC approved the North American Electric Reliability Council ("NERC") as t e electric reliability organization and has approved nation-wide reliability standards. FERC has also app oved NERC's delegation of certain functions to regional reliability organizations, including the Mi west Reliability Organization("MRO"). The standards that are administered by NERC and the MRO app y to all users, owners, and operators of the bulk power system including the Utility. Th 2005 Act requires the Department of Energy to designate national interest electric transmission cor idors, where constraints or congestion adversely affect consumers. FERC may authorize the siting of tra smission facilities within those corridors if the states have failed to act. The courts held that FERC may act when a state, rather than failing to act, has denied an application for siting. It is anticipated that FERC will continue to assert broad authority to authorize the siting of transmission facilities and that Co gress might act expressly to expend FERC's authority. Th: 2005 Act requires price transparency and prohibits market manipulation for all wholesale markets. Th: requirements apply to all entities that participate in those markets, including the Utility. Re'•it Electric Service Territories Th: State of Minnesota(the "State")presently prohibits other electric utilities from serving areas within a mug icipality which are presently receiving retail electric service from a municipal utility. The State pe I its municipal utilities to expand their retail electric services to additional areas located within the mug icipalities' boundaries, including areas added by way of annexation. When municipal utilities expand thei retail electric service territory, they are required to pay compensation to any other displaced electric util ty. The compensation due to such displaced utilities is determined by the courts, utility regulatory co 1 missions, or by mutual agreement between the two parties. - 7 - 16